A new Department of Labor law has been passed that will double the eligible
salary threshold for earning overtime (OT) from $23,660 in a year to $47,476.
Employers must make changes to their employee’s status and paychecks
by December 1, 2016. While this is being heralded as a major win for the
average American worker by some, others are hesitant to celebrate, especially
business owners in Florida.
Out of the estimated 4.2 million employees expected to benefit from this
boon of overtime hours. However, the rule will effect employees who are
subject to exemptions as executive, administrative, and professional employees.
For example, a store manager making less than $47,476 a year, and working
more than 40 hours, will need to start clocking in and out to track how
much OT they get in a workweek. Understandably, this could put a lot of
strain on businesses big and small, but especially small.
In order to meet the new OT standard and keep their doors open, businesses
may have to start looking for new and creative ways to run their shops.
Most notably, employers are expected to reorganize and change employee
job functions, or institute a time-clock approach that absolutely does
not allow anyone to work more than 40 hours. Pursuing either option will
require careful stepping, however, as employment laws could be violated
without proper planning, opening the door for even more trouble for small
Of course, there is another solution that is the exact opposite of reduction;
increasing employee salaries. Companies who have numerous employees just
around the new threshold may find it easier to boost them over it, to
$48,000 or more. Not only would this remove their worry about tracking
hours and overtime, it would certainly increase employee morale. However,
the new law requires the threshold to be reviewed and revised once every
three years to adjust for inflation, so a boost would only be a temporary
solution by definition.
Whether you are an employee or an employer in Florida, this new overtime
law is sure to affect you in one way or another. Make certain you know
all you need to about it before December 1st, and make certain you or your employer is in total compliance with the
changes. If you have any questions as business owner, or feel that your
rights as a worker are being overstepped, you can
contact The Law Office of Shands M. Wulbern, P.A. and our Jacksonville employment
lawyer will be happy to help you.