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New OT rules may catch small business by surprise

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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.



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