Employers: Make your list and check it twice!

Are you prepared for changes to overtime regulations?

We’ve been tracking the proposed rule changes for overtime exempt employees concerning “white-collar workers” for quite some time now. As a refresher, the proposed regulations will drastically increase the number of employees entitled to overtime pay under the Fair Labor Standards Act (FLSA). It’s a good idea for employers to start taking stock of their workforce and planning for the changes now, as they could take effect as soon as this summer.

Among many other things, the proposed rules set the standard salary level at the 40th percentile of weekly earnings for full-time salaried ($921 per week, or $47,892 annually). According to the Department of Labor, this salary level “minimizes the risk that employees legally entitled to overtime will be subject to misclassification based solely on the salaries they receive”.

This would raise the salary threshold from $455 a week (the equivalent of $23,660 a year) to about $970 a week ($50,440 a year) in 2016. What does this mean for YOU? Some of your employees that make below this new threshold may no longer be exempt from overtime pay!!!! The implications are huge!

Are you thinking that the new rules won’t apply to you OR that you can fly under the radar? Think again. Penalties for overtime violations are stiff. In several recent cases, the government has penalized company owners and officers for failing to pay overtime – imposing stiff fines and even imprisonment!

Start preparing today! Contact C&G to assist you!

P: 248-395-3699 E:

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