Your Company’s Overtime Policy

This December, a new federal law will mandate that all companies begin to pay their employees, who make under a certain income bracket, overtime pay. While this policy is not new–the minimum salary threshold has more than doubled, leaving many companies to scramble to adjust their policies in order to make the deadline.

What does this mean for employees? To start, it means that hours work may be adjusted. Many organizations will begin to adopt time-monitoring procedures to track the hours worked by the employees who fall into this category. Once employers have a sense of the amount of work that gets done and how long it takes to complete the work, new policies will need to be made.

This may look like a myriad of options. To start, employers might increase the salaries of their employees so that the employees no longer fall within the bracket. This is a costly benefit for companies because the new threshold is a significantly higher rate.

Another option is to cut down on the work required for the job. This will also be costly to the employer because it means that the work that is trimmed off, will need to be completed by new employees, transferred to employees making a salary above the threshold, or lost completely.

While December 2016 is still months away, it’s important that companies begin to address these problems now.