2016 has been a big year for changes to employment law. In July, many states were affected by laws that raised the minimum wage, sometimes as high as $15 an hour. In December of this year, another law goes into effect nationwide that changes how overtime is paid to salaried workers.
Effective December 1, 2016, if an employee earns less than $47,476 annually or $913 per week, they are no longer exempt from overtime pay. An employee must make at least $134,004 to be considered for the “highly compensated employee” exemption. These salary levels will increase every three years. There are additional nuances to the law regarding commission, bonuses, and other forms of compensation. We recommend consulting your attorney about how these laws apply to your specific situation.
It’s important to comply with these new rules, because non-compliance could lead to costly litigation for your business. But if you have employees who are affected by this new law, how can you adapt?
The first thing you can do is analyze your workforce. If you currently have employees who regularly work overtime, consider transferring those hours to other employees. If that isn’t possible, you may want to consider whether hiring additional staff would be a more cost effective solution.
If you find that these new laws cause your employment-related expenses to rise, cutting costs in other areas can help your business persevere. A strategic cost-cutting plan analyzes all of your expenses and finds places where expenses can be lowered. Realizing these savings can improve your bottom line and help soften the blow of increases to your payroll spending.
If you’re concerned about how new employment laws will affect your budget, contact Silverback. With just your bills from the previous month, we can find areas where you can cut expenses. We’ll also help you implement the changes, so all you need to do is enjoy the benefits.
Don’t let new laws throw you for a loop – reduce your spending to help weather the storm.
