New Federal Rules Expand Overtime Pay to More Workers

Beginning December 1, 2016, anybody making a salary of less than $47,476 will automatically qualify for overtime pay when they work more than 40 hours a week. That's roughly double the $23,660 federal threshold that's currently in place and considerably more than the $40,200 state threshold.

The bottom line is if your employees are paid an hourly wage, you don't have to worry about the new rule. If you have salaried employees making less than $47,476, you have some options to come into compliance. You can: 1) pay time and a half for overtime work; 2) raise your employees' salary above the new threshold; 3) limit employees' hours to 40 per workweek - or some combination of these.

Here is a short video that explains the new rules. Please do not ignore this new rule. Violations of the federal wage rules can be very costly! Contact Lauren Sutherland at COA if you have questions.