Question

The Supreme Court has recently pass laws that double the threshold amount for low wage salaried employees to be qualified for overtime from the current $23,660 to 50,440. This means that employers will now have to pay those low wage salaried managers for all of those extra hours that managers typically have to put in.

1. As a business owner, is it fair to you to have to shoulder another Government sponsered regulation that places more downward pressure on your profit margins?

2. As a low salaried employee do you now cut back on your typical time spent performing your managerial duties now for fear that your employer will have to legally shoulder the burden of profit loss as a result of increase salaries?

3. Can the law be a win-win for both parties? Explain!

Answer 1

After nearly 30 years as an entrepreneur, i understand how somuch agency legal guidelines can affect small corporations. Themost contemporary division of Labor (DOL) trade to put a wrench inan employers payroll price range is the new additional timerule.

Small industry owners will have got to adapt and find solutionsspeedily so as to survive. Fortunately, there are steps that youcould take now to arrange for the new additional time ideas.

These are the alterations to the additional time rule.
The DOL time beyond regulation rule determines which workers areexempt from overtime. Employers don't need to pay overtime toexempt workers. If an worker is non-exempt, employers need to payadditional time for overtime hours worked.

On may 18, the U.S. Division of Labor passed a brand newadditional time regulation a good way to make 4.2 million exemptemployees non-exempt. The brand new DOL extra time rule changes thewhite-collar exemption and which staff can obtain time beyondregulation.

To be exempt, an employee must acquire a revenue and have govt,administrative or authentic duties. These two qualifications do notchange with the brand new overtime rule.

There's also a third qualifying aspect to be an exempt worker:The employee need to be paid greater than the income threshold. Thesalary threshold is ready through the DOL within the overtimeprinciples.

The brand new additional time law increases the cash threshold,making fewer workers exempt from extra time. Earlier than the rulechanged, the revenue threshold was $455 per week, or $23,660 per 12months.

The brand new earnings legislation raises the edge to $913 perweek, or $forty seven,476 per year. The expand is a little morethan double the prior cash threshold. Thats relatively thesoar.

However, that no longer all. The cash threshold isn't the onlyfactor that is complicating small trade payroll budgets. Theminimum income threshold will robotically increase each three yearsestablished on wage development. The first computerized expand willoccur on Jan. 1, 2020. That implies more employees will end upexempt as the edge rises.

The new rule additionally updates the salary degree forparticularly compensated workers. Employees have to obtain as aminimum $134,004 per year to be particularly compensated.

Small corporations usually are not exempt from the extra timeregulation and ought to comply by way of December
What does it imply for small industry house owners?
The dimensions of the additional time regulation influence willdepend on the number of non-exempt workers a trade has after theincome threshold increases.

The overtime legislation will not have an effect on thebusinesses, which have all non-exempt workers with the brand newthreshold. Non-exempt workers continually must be paid overtime forworking greater than forty hours per week.