The recent update to the FLSA overtime rule will definitely have a major impact on businesses across America. The rule change drastically increased the salary threshold for employees eligible for overtime pay. The release from the United States Department of Labor addresses the rule update and its key components.
On May 18, 2016, President Obama and Secretary Perez announced the publication of the Department of Labor’s final rule updating the overtime regulations, which will automatically extend overtime pay protections to over 4 million workers within the first year of implementation. This long-awaited update will result in a meaningful boost to many workers’ wallets, and will go a long way toward realizing President Obama’s commitment to ensuring every worker is compensated fairly for their hard work. -USDOL
Here are the ways employers can expect to be affected by the new rule. If you aren’t sure what the rule change will cost your business, use this handy calculator. This tool estimates how much overtime employers will incur if they choose to continue to allow white collar employees to work over 40 hours a week, instead of increasing employees’ salaries beyond the threshold that requires overtime pay. Use the tool to see how your business stacks up.
For more industry updates or for information about voluntary coverage options and employee benefits solutions, call your Taylor Insurance Services expert today. Don’t have a Taylor Agent? We’d love to get you connected to the Power of T. Call us today at (229) 247-6411. Our experts are ready to help you get the most out of your employee benefits program and develop strategies that both recruit and retain top-notch talent.
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