Have you heard? The Department of Labor (DOL) recently announced a new rule that says anyone working more than 40 hours a week and making a salary of less than $47,476 ($913 a week) will automatically qualify for overtime pay. The new law goes into effect on December 1st, 2016.
This is a huge change! Before, only workers who made less than an annual salary of $23,660 received paid overtime. The federal government has now more than doubled the salary threshold, allowing 35% more salaried workers to be eligible for overtime. According to the DOL blog, “The updates will impact 4.2 million workers who will either gain new overtime protections or get a raise to the new salary threshold.”
So what does this mean for the employers? You can:
- Either pay workers more so that they are exempt from the overtime threshold
- Comply with the new law and pay those who work more
- Or simply make sure employees aren’t working overtime
Calculating overtime can be very tricky. For businesses who choose to keep salaries the same and pay the mandated overtime to employees, the Overtime Calculator in BillQuick can be very helpful. This smart tool marks the time entries as regular, overtime and double overtime based on the rules configured by you to accommodate most hours and wages rules worldwide.
Read this blog article to learn how to calculate regular, overtime and double overtime pay with the Overtime Calculator in BillQuick.
If you would like to learn more about BillQuick or schedule a walk-through demonstration today, please call us at (866) 945-1595.