Jul 19, 2024
This month, the U.S. Department of Labor has updated overtime rules that could potentially impact your business by calling for increased employee pay through earned overtime. For business owners, staying informed of this change is not just beneficial, it’s imperative.
The new regulations expand overtime protections and primarily affect lower-paid salaried workers, including those in executive, administrative, or professional roles who may not previously have qualified for overtime. Under the new rule, businesses will need to either raise salaries to meet the new earnings threshold or pay time and a half for any hours worked over 40 per week.
For local businesses, the implications of these changes are substantial. Adhering to the new rule means potentially higher payroll expenses. Employers need to track work hours meticulously and consider bonuses and commissions in overtime calculations. The decision between raising salaries to meet the threshold or restructuring for overtime pay requires careful consideration of business operations and financial health.
Given the complexities and the potential for severe financial consequences if not managed correctly, these changes need to be addressed with a comprehensive strategy. Missteps in classification or failing to adequately track hours can lead to costly legal troubles.
Navigating these changes can be daunting for businesses of any size. Fortunately, Buckeye Community Bank’s trusted partners at Ahola Payroll & HR Solutions are equipped to help you adapt to these new regulations efficiently and effectively. Ahola offers expert payroll services and compliance assistance to ensure that your business not only meets the legal requirements but also protects both your business’ stability and your employees.
As a business owner, understanding and addressing these new overtime rule changes is not optional—it's essential for safeguarding your business. If you need help to ease the transition, contact Buckeye’s Chris Pratt at 440-233-3944 or cnpratt(at)buckeyebank.com to be connected with the expertise to take proactive steps to ensure that your business continues to thrive under the new regulations.
