This December, the Department of Labor’s (DOL) new overtime rule will come into effect. The new rule, “which raises the annual salary threshold for exempt employees from $23,660 to $47,476”, will affect “approximately 4.2 million American workers” and countless small businesses.
“John Waldmann, founder and CEO of Homebase, an employee scheduling and time-tracking software application for the restaurant and retail industries” gives his take on how small businesses can prepare for the new rule in the coming weeks:
- If you haven’t already, start tracking time. Overtime will apply for hours worked past 40 a week.
- Evaluate employee workload
- Budget for the higher cost. Homebase provides a free calculator for those interested – https://joinhomebase.com/overtime-wage-calculator/
- Speak with affected employees who you are considering moving from salaried to hourly.
- Keep overtime rate higher than minimum wage
- Make sure to comply with state meal and rest break requirements