Human resource professionals already have had several changes to absorb during a short holiday week, and yet another is in the works.
The U.S. Department of Labor has proposed raising the annual salary level at which overtime pay kicks in from $23,300 to $50,440. The proposal is subject to a 60-day review period before a final rule change can be issued.
If enacted, the overtime regulations would affect businesses in a number of ways, according to the Society for Human Resource Management:
Widespread application. More than 11 million employees in every industry will be affected. Most employers covered by the Fair Labor Standards Act would have to analyze and adjust employee classifications by an undetermined date in 2016.
Increased labor costs. The proposed rule sets the standard salary level at the 40th percentile of weekly earnings for full-time salaried workers, which for 2013 was $47,892 annually. If this approach is adopted, the 2016 level is projected to be $50,440 annually. This is expected to have a disproportionate impact on non-profit and service businesses, as well as certain geographic regions.