Smart Business

THE POTENTIALLY COSTLY NEW OVERTIME RULE FOR 2016

A new rule will change how employers compensate employees. Effective December 1, 2016, workers who earn above the previous threshold but below the new one will qualify to receive time-and-a-half for each hour they work surpassing 40 hours a week. An estimated 4.2 million salaried workers will become eligible for overtime pay under the new rule.

THE NEW RULE WILL:

1. RAISE THE SALARY THRESHOLD

raise the salary threshold at which white-collar workers are exempt from overtime pay from $23,660 to $47,476

2. STRENGTHEN OVERTIME PROTECTION

strengthen overtime protection for salaried workers already entitled to overtime

3. UPDATE THE SALARY THRESHOLD

automatically update the salary threshold every three years, based on wage growth over time.

4. PROVIDE GREATER CLARITY

provide greater clarity for workers and employers.

CONCLUSION

Please note that job titles do not determine exempt status. We help guide our clients through complex new rules such as this, because we are “Small Enough to Care”.

LEARN MORE TODAY

Contact Steven Dohan for more details regarding this update and other CPA related topics and services provided by Dohan Certified Public Accountants. 786-660-7780