Did You Know: Salary Threshold for Overtime Could Double (or Triple!)
Did you know there is a salary threshold for overtime? And, did you know this threshold could more than double in the near future?! Many believe that if they classify someone as exempt or as a salaried worker, then they are not required to pay overtime. However, not only do you need to be concerned with whether or not you have classified your employees accurately, you also have to ensure that those classified as exempt are over a certain salary threshold in order to not pay out overtime (other exceptions also apply). Currently, there is a federal law that mandates that exempt classified workers may still be required to be paid overtime if their salary is below the current threshold of $23,660. In a hearing by the Workforce subcommittee today, June 10th, much of the time will be focused on this overtime rule. One proposal has the threshold increasing to as much as $69,000! Though, other options set the threshold at $42,000 or $50,000. Regardless of the outcome, if there is a change to the threshold, your bottom line will be affected. It’s estimated that more than 6 million workers will be impacted.
Get more details in this Inc. article and look for updates in the days to come to determine the effect on your cash flow.