The holiday season is among us, which means that it’s the season for raises, bonuses, and more. A lot of employees have expectations this time of year because many employers provide extra perks. Employers might give extra pay as incentive to work during the holidays, cash bonuses, extra time off, and more. With all of these different policies implemented by businesses, employees aren’t sure what they’re actually entitled to. What can employees expect when they work on a holiday?
If you are a non exempt employee or you have non exempt employees in the US, times are about to change! Since 2004, overtime threshold rules have stayed the same. This means that the cost of living threshold increased and the requirements for overtime did as well. The Obama administration took up the issue and directed changes to overtime laws that would have expanded the number of eligible workers. However, the Trump Administration prevented those changes. Nearly 3 years later, the rules are finally slated to change, but severely watered down from the previous plan.
On Sept. 24th, 2019 the US Department of Labor (DOL) announced their final overtime rules that will affect many Americans. In fact, the new overtime rule will make overtime pay available to over 1.3 million workers and will provide an estimated $298.8 million in additional pay. The new overtime rules will become effective officially on Jan 1st, 2020. Here’s what you need to know:
Many businesses have employees that get paid multiple pay rates during their shift. This happens when they perform more than one specific job function. For those employees, the hourly rate depends on the job they are working on at the time. Hourly rates by job can vary when employees work in the construction, plumbing, caretaking, landscaping, and many other industries. When you have an employee that works under different rates, you need to make sure that you are calculating their regular pay rate properly for overtime. Unless your employee is specifically exempted, employees working at more than one job rate covered by the FLSA must receive overtime pay at their regular rate and not at the specific rate for the job they are doing when overtime is incurred.
Let’s face it: there are a lot of regulations to follow when it comes to owning a business. Following all the applicable laws can be tough. Although it can be time consuming, you should make sure that you are always following the latest legal protocol. The best way to avoid these pitfalls is to hire an HR consultant to keep you on the right path. However, not every business can afford someone like that, so you should know where to go if you’re the self-help type of business owner. A good place to start is the Fair Labor Standards Act (FLSA) website. The FLSA establishes standards for minimum wages, overtime pay, record keeping, and child labor. So, what are some common pitfalls employers run into that lead to underpaying employees?