Possible effects of 2016 Federal Wage Law

In the year 2016 the Department of Labor’s plan is to change how companies must approach exempt and non exempt employees. A high percentage of employees who are considered to be salaried supervisors and for managers, they will be reclassified as hourly, tapping in to the Federal Overtime Rules.

The lack of preparation and knowledge when it comes to these regulations may have a huge impact on the company’s bottom line.

For beginners, the minimum salary threshold would have to rise at a fair amount. The current threshold a worker must reach to be qualified under overtime-exempt is at $23,660. The planned regulation seeks an increase to $50,440.

The salary threshold also now will be now joint to an escalator, so it can catch up with the economy’s inflation. And the department of labor is opting in for changes to the duties test. The said department has yet to suggest to the different government branches. But the agency did ask for comments regarding whether the tests should be altered and whether they are working to screen out employees who are not under white collar exempt employees.

In the past year, employees being paid at about $23,400 per year were under non-exempt and were paid overtime if they are working oever 40 hours per week. The National Labor Department in the year 2016 has raised the status of non-exempt to $50,440. Making employees that are earning on that amount per year are now under non-exempt. With this, their hour must be noted and tracked, they must be paid overtime for hours over 40 per week. This will greatly shade over a large number of employees that have the positions of supervisors or managers who have never been subjected to tracing or overtime pay. Many people ask on who will now be subjected to Federal Scrutiny for overtime wages.

A solution to such problem is:

• To diligently manage the scheduling of employees’ work hours per week,
• The hours worked of employees should be accurate
• Manage the clock ins and outs that are not authorized
• Set some rules and regulations pertaining to work hours and scheduling