After this week’s elections, the majority in four states voted to raise the minimum wage in their states. Colorado, Maine, and Arizona will raise the minimum wage to $12 per hour by 2020 and Washington will raise it to $13.50 by 2020. This will affect 2.2 million workers.
Category: Overtime & Wages
The Department of Labor roughly doubled the overtime threshold this week, changing the FLSA overtime exemption rules. The rule raises the salaried threshold from $455 per week to $913 per week. This means that anyone earning under $47,476 per year will be eligible for overtime. The rule gives employers until December 1, 2016 to comply. The salary will be updated every three years.
The change to the salaried threshold will impact some five million workers, which touches nearly every business in the country.
Several cities have significantly raised the minimum wage in recent years around the $15 per hour range but California is the first state in the nation to do it. On Monday, Governor Jerry Brown and California state legislators reached a deal to raise the minimum wage to $15 per hour by 2022. The deal raises the minimum wage from the current $10 per hour by 50 cents per year for 2 years, and then by one dollar for four years.
Business owners and employees alike are confused by complicated double time rules. Some companies offer double time for holidays. Some don’t. Some types of employees get double time. Some don’t. Some states offer double time, most states don’t. If you’re an employee, how do you know if you’re due double time and how do employers calculate it? Read on to learn about double time laws, who gets it, and how to calculate it.
I know what you’re thinking. Your employee will report it to the Department of Labor. You’ll get sued, fined, ordered to pay back wages, and forever fear the DOL. It’ll be an ugly mess over an honest mistake.
Luckily, that’s not necessarily the case. If an employer honestly tries to follow the rules and doesn’t pull any sneaky maneuvers to eliminate or reduce overtime, then the DOL will probably not crack the whip when an employee sues. At least that’s how it has appeared in a recent case.
No employer wants to get busted for overtime violations but a lot of small businesses find themselves in sticky situations when they don’t know the laws. Running a small business is hard enough without also being familiar with all the federal and state labor laws.
It’s our job to know overtime laws so we’ve put together this infographic to highlight the most common ways employers violate the FLSA wage and hour laws, how to avoid violations, and the penalties that might ensue.
<div style=”clear:both”><a href=””><img src=”https://www.timesheets.com/blog/wp-content/uploads/2016/01/Overtime-Violations-Infographic.jpg” title=”How to Avoid Overtime Lawsuits” alt=”How to Avoid Overtime Lawsuits” border=”0″ /></a></div><div>Courtesy of: <a href=”https://www.timesheets.com/”>Timesheets.com</a></div>
Embed This Image On Your Site (copy code below):
The stipulation might read something like this: We do not pay for unauthorized overtime. Approval must be obtained prior to starting any work over 40 hours. If overtime is not approved, it is not our responsibility to pay you time and a half for it.
But watch out if you have a rule like this in your business! Just because it’s in your employee handbook doesn’t mean it’s valid.
Under the Fair Labor Standards Act (FLSA), the Federal minimum wage is currently $7.25 per hour but many states require employers compensate employees at a higher rate. A few states are changing the rules soon. Employees must be paid the rates and not the lower, Federal rate.
Contributed by Jillian Johnson
If you currently work or employ people in an executive, administrative, or professional position, and you or your employees are ineligible for overtime pay, it’s important to understand the changes that will occur in Obama’s proposed overtime law. Many employees who currently fall into the category of being exempt from overtime pay due to their income levels will no longer be exempt. Let’s take a look at the rules and how they will impact workers. Continue reading How Will Obama’s Overtime Laws Impact Employees and Businesses?
Employers can make a lot of mistakes with overtime calculations if they’re not careful. Sometimes they avoid paying overtime altogether by classifying employees incorrectly as contractors, paying employees a salary when they should be working by the hour, “paying” private employees comp-time in lieu of overtime, etc.
Even if you classify your employees correctly and don’t deliberately withhold overtime payments, you can still make a lot of mistakes if you’re not careful.
California labor laws are a little different than federal labor laws. In California, employees get overtime after 8 hours of work in one day. This law protects employees from being overworked, which is important, but the law could get in the way of other conveniences. For example, what do employees do when they prefer working four 10 hour shifts instead of five 8 hour shifts?
Employees would think that the overtime and double time laws are pretty straight forward. They think they should be able to count up the number of hours that should be accounted for both based on the number of hours they work each week but, in fact, the calculations can get pretty tricky. There are even ways that employers can deliberately avoid paying double time (and even overtime) for certain types of employees and in certain situations.