• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

New OT rules may catch small business by surprise

Get PDF file

by on
in Centerpiece,Human Resources,Overtime Labor Laws

More than half of more than 1,300 small business owners surveyed in April didn’t know a massive change in the white-collar overtime rules was on the way.

They were equally unaware that for many employees, they must now decide whether to raise salaries above the new $47,476 threshold or pay overtime when exempts work more than 40 hours a week.

The new rule affects tens of thousands of small employers that have relatively low-paid exempt employees. The survey—conducted by Manta, a training and marketing firm serving small businesses—found that:

  • 51% of small business owners said they didn’t know whether their salaried employees were exempt from overtime pay under current rules.
  • 26% said they would respond to the new rule by paying overtime to salaried staff; 13% said they would hire part-timers to avoid overtime costs.
  • Small business owners were surprisingly sanguine about the change. Only 40% said they oppose raising the salary threshold, and 22% said they favor it.

 

 

Leave a Comment