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:

  1. If you haven’t already, start tracking time.  Overtime will apply for hours worked past 40 a week.
  2. Evaluate employee workload
  3. Budget for the higher cost.  Homebase provides a free calculator for those interested – https://joinhomebase.com/overtime-wage-calculator/
  4. Speak with affected employees who you are considering moving from salaried to hourly.
  5. Keep overtime rate higher than minimum wage
  6. Make sure to comply with state meal and rest break requirements
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