Under current law, most employees making $23,660 or less per year automatically qualify for overtime after 40 hours worked per week. The new rule recently issued by the U.S. Department of Labor (DOL) would raise that threshold to $47,476, effective December 1, 2016.
The impact of this new regulation will vary amongst businesses. It is important for every employer to assess the impact of these regulations now and to implement any changes that may be deemed necessary for compliance purposes in a way that is most cost effective and beneficial to their business.
As always, we are happy to answer any questions you may have regarding this tax matter.