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2019 Overtime Law Changes Proposed

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With new overtime laws presented by the Department of Labor (DOL), 2019 might present some changes to employee payroll for some organizations.

2019 Overtime Law Updates

So, what’s on the horizon for 2019 overtime laws?

The plan is to makes changes to salaried or “exempt” employees who would, under current laws, not qualify for overtime pay laws. The new law would outline the methods for calculating overtime pay in 2019.

Specifically, the law relates to salaried workers like executives, administrators, and professionals. That means that employees who often work hours that would qualify as overtime would no longer qualify as “exempt.”

This change is not currently in effect, but changes might be coming in 2019 as new rules are discussed and pushed through the law-making process beginning in January 2019.

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what's new for the 2019 overtime law?

The new overtime law in 2019 builds upon a series of overtime laws that advocated for a $47,500 maximum salary level threshold for mandatory overtime pay. This change would change that threshold to around $33,000 according to Labor Secretary R. Alexander Acosta.

What would a 2019 overtime law change mean for businesses around the nation?

What 2019 overtime laws mean for employers

If you think your business might be affected, here are some suggestions:

  • Do an audit of current salaries to ensure current law compliance. Specifically, look at employees working more than 40 hours per week who are making less than $23,660/year ($1,971/month or $455/week.)
  • Consider which employees might be eligible for the new laws. If current exempt employees make less than the proposed threshold and work more than 40 hours, perform calculations to determine how much it would cost either increase salaries versus pay overtime.
  • Communicate with those exempt employees to determine what would work best: overtime pay or an increased salary.

Another option might be to make more hires to distribute the hours in order to avoid overtime for any one employee.

Either way, you’ll need to do some math to determine what will work best for your organization.

In the end, make sure you can rely on your timesheet software provider to respond promptly to any changes as they happen. You can count on DATABASICS to stay up to date and make the necessary updates to your timesheet solution to keep up with the latest regulations.

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