the road to overtime compliance: a small business guide

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The Road to OVERTIME COMPLIANCE A Small Business Guide

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The Road to

OVERTIMECOMPLIANCE

A Small Business Guide

A new overtime law is here,expanding overtime pay to

4.2 million workers.

The U.S. Department of Laborruling dramatically increased the

salary threshold,or the minimum

salary you must pay an employeefor them to be exempt from

overtime pay.

The salary threshold will increasefrom $24,660 to $47,476.

That's a 101% increase inthe salary overtime law.

For small businesses, that101% will have a huge

impact on payroll budgets,scheduling, workplaceflexibility, and more.

Choose one of these four routesto prepare your small business for

the overtime law changes.

1 2 3 4

1Increase your employeessalaries to $47,476 so theykeep their exempt status.

Tip:1

Going this route works best whenyour employees already have

salaries close to the new salary leveland regularly work overtime hours.

2Switch your newly nonexemptemployee to hourly, & payovertime when necessary.

Tip:2

This route works best foremployees who work 4o hours orfewer in a typical workweek, but

have occasional spikes that requireovertime pay.

3Limit the number ofovertime hours employeesare allowed to work.

Tip:3

This route will reduce the amountof overtime wages you have to pay.

It also incentivizes employees tofocus more on productivity.

4Use the combination of theprevious three routes thatworks best for your business.

All businesses mustcomply with theovertime rule byDecember 1, 2016.

Don't underestimate the impact of newovertime regulations. Prepare your small

business for changes today.