New Overtime Rules and how it affects Entrepreneurs

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The final overtime rules were now published by the Federal Department of Labor. First of all, for an average employee, three minimum requirements have to be met for overtime exemption under the white collar jobs.clock-77497_960_720

  1. Minimum salary.

The DOL has changed its policy by setting a new minimum salary of $913.00 per week from $455 per week. Another proposal from DOL proposed an annual salary increase for minimum salary from 3-year increase.

  1. Salary basis.

The employee must receive payment on a salary basis not hourly. Accordingly, limited deductions are allowed for absences and deductions made based on quantity or quality of work is not permitted.

  1. Duties test.

The primary duty of the employee must be exempted. The DOL has no proposal any particular changes to primary duty test but it asked many questions to consider adopting a harder-to-meet percentage test. Finally, the primary duty test remained unchanged. You need to know the things you may do and you may not for adjusting to the new regulations. When you’re analyzing positions bear in mind the legal issues. When you do evaluation or re-evaluation some positions when it comes to their duties, some will fall to legal scheme.

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