What You Should Know About the New Overtime Pay Rule
12 Nov 2019The U.S. Department of Labor recently announced new rules that would make an additional 1.3 million American workers eligible to receive overtime pay. These new rules have left many small to mid-sized businesses, who will bear much of these costs, reeling. The more you know about these new rules and what they mean for your business, the better you can manage the new overtime pay rule changes. Here’s what you need to know about the overtime pay rule changes and how they might affect your business.
What do the New Overtime Pay Rules Offer?
The first thing businesses need to understand is what these new rules mean for them. The big takeaway for employers and employees alike who may have been salaried before is that the new rules increase the standard salary levels.
With the new “standard salary level” employers must pay overtime wages to employees earning up to $684 per week or $35,568 annually. This is an increase from $455 per week or $23,660 annually. This means more people actually qualify for overtime pay. There are also other changes for “highly compensated employees,” but most small businesses aren’t overly concerned about those rule changes.
For small to medium-sized businesses who employ people earning these wages, it means more overtime pay may be required.
When do the New Rules Go into Effect?
Businesses have until January 1, 2020, to determine how to address these rule changes and make staffing decisions based upon these new rules. For some businesses, this involves the hiring of additional people to spread the workload out over multiple employees. Other businesses will consider different methods of addressing the issue and its financial ramifications.
How Can GPS Fleet Tracking Help?
GPS fleet tracking can be especially instrumental in helping to ensure accurate reporting of hours by employees to ensure they get paid the appropriate amounts according to the work they perform. Not only can it help to determine regular hours worked by these employees, but also any overtime hours they may have worked that require compensation under these new rules.
GPS fleet tracking can also help to reduce time theft conducted against your business by accounting for employee locations and actual hours worked rather than only having reported hours worked to go by. This means employees will no longer be conducting personal business or running personal errands on your dime. Especially not while earning overtime pay for these instances.
Don’t get caught unaware by the new overtime pay rules going into effect. Act now by investing in GPS fleet tracking and keep your pay rates under control.
Comments are closed.