Scott Human Resources
  • Home
  • About Us
    • About Us
    • Company History
    • What Our Clients Say
    • Why Outsource HR?
  • HR Services
    • HR Consulting
    • Hiring & Onboarding
    • Training & Coaching
    • Assessments
    • Legal Compliance
    • Performance Coaching
    • Teamwork
  • Resources
    • Bye Bye Corona Video Series
  • Job Board
  • Blog
  • Contact Us

New Overtime Rules

http://scotthr.com/wp-content/uploads/2016/09/BLOG_FLSA_1-600X400_pexels-karolina-grabowska-4386431.pnghttp://scotthr.com/wp-content/uploads/2016/09/BLOG_FLSA_1-600X400_pexels-karolina-grabowska-4386431.png
New Overtime Rules
September 26, 2016 Kristin Scott

New Overtime Rules

For all employers, the new overtime rules go into effect December 1, 2016. Here is a quick video from our friends at the Department of Labor that summarizes the rules nicely through multiple examples.

Here is a summary form of another example that hopefully makes it easier to understand.

Employee X works a consistent 50 hour week, and they earn $40,000 per year. There are 3 options that could happen with the new overtime rule.

1. For those hours in excess of 40 for the week, they are to be paid overtime for those hours worked at time and a half.

2. The employer could choose not to pay overtime and raise the employee’s salary to $47,476 per year, which is the new threshold.

3. Cut the employees hours back to 40 hours per week so that they don’t earn any overtime. Thus offloading the employees burden, giving them more free time and a new work life balance.

overtime options graphic

The old salary threshold was $23,660 per year so it has a little more than doubled. If someone works say 2200 hours per year at $40,000 per year, the employer would have to choose the best method on whether or not to raise the salary to $47,476 or pay the overtime. Here is the math on this possible scenario.

$40,000 per year / 2080 hours (40 hours per week) is $ 19.23 per hour.

Time and a half is $ 28.85 per hour. ($19.23 x 1.5)

120 extra over time hours (based on 2200 hours worked) at $ 28.85 per hour is an additional $3,462 in salary for the employee.

The employee now gets $43,462 and is under the threshold of $47,476. In this scenario, the employee is rewarded for the overtime they have worked, and the employer is compliant with the new overtime rules. Employers are going to need to be cognizant of the new rules to make sure that they are compliant and to determine what is the best option for them and their employees.

The clock is ticking! Has your organization prepared for the new overtime rules? It’s time to evaluate your team and make the necessary changes. Contact Scott Human Resources if you have any questions about the new rules and how they affect your business by emailing Kristin@ScottHR.com or call 785-272-5410

This article was originally posted by BT&CO. and has been posted with permission. If you have any questions related becoming a valued payroll client, send an email to info@btandcocpa.com or call (785) 234-3427.

  • Author
  • Recent Posts
Kristin Scott
Follow Me

Kristin Scott
President at Scott Human Resources
Your enthusiastic HR expert! After more than 20 years in the human resource industry, Kristin is motivated by providing real solutions for HR challenges and building relationships that last.
Kristin Scott
Follow Me

Latest posts by Kristin Scott (see all)
  • Profile – TK Business Magazine – March 13, 2020
  • The Benefit of Foresight – October 22, 2019
  • Goals and Bucket Lists – June 17, 2019

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • More
  • Click to email a link to a friend (Opens in new window)
  • Click to print (Opens in new window)

Related

Tags: business, deadlines, Department of Labor, exempt, HR, Human Resources, IRS, legal, overtime

Leave a Reply Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

No comments yet.

  • Latest
  • Popular
  • Congratulations Graduate! 5 Key Steps to Employee PromotionCongratulations Graduate! 5 Key Steps to Employee Promotion
    May 18, 2016
  • Performance ManagementPerformance Management
    December 16, 2016
  • The Hidden Harm of Toxic EmployeesThe Hidden Harm of Toxic Employees
    June 21, 2017
  • Profile – TK Business MagazineProfile – TK Business Magazine
    March 13, 2020
  • Behavioral Interviewing Tips & Techniques EventBehavioral Interviewing Tips & Techniques Event
    January 13, 2020
  • The Benefit of ForesightThe Benefit of Foresight
    October 22, 2019
Copyright © ScottHumanResources.com 2020. All rights reserved. Treat people with kindness.
 

Loading Comments...