Is your business ready for Christmas?

untitled-design-11December may come with a lot excitement for many employees.  It is the last month of the year and for many people it brings a short but necessary business break. On 2016, however, December comes with an additional reality that goes beyond the Christmas season.  Starting December 1, the “Overtime” Final Rule will come into effect and businesses should already be making the necessary adjustments to accommodate this new regulation.

The rule updates the regulations for determining whether white collar salaried employees are exempt from the Fair Labor Standards Act’s minimum wage and overtime pay protections. How does it work? Basically, these employees are exempt if they are employed in a bona fide executive, administrative, or professional capacity, as those terms are defined by law.  In the process of executing the new regulation, many businesses could fail in making the right assessment to classify their workforce and distinct which employees are covered by the new rule.

Eleva Solutions can help companies in the process of make this assessment and implementing the changes to comply with the new rule. As a general guideline, business owners should know that employees will be exempted from the new rule only if they are paid a predetermined and fixed salary, if such salary is more than a specified weekly salary level equivalent to $47,476 annually, and if they primarily perform executive, administrative, or professional duties.  The salary benchmark is important because it might require certain businesses to either raise the salary of previously classified white collar employees or combine several options provided by the rule to respond and comply with the updated standard salary level.

The consequences of not complying with this new rule could bring lawsuits, administrative procedures, fines and even criminal charges to employers, sanctions that could be detrimental to the growth of any business.  If you are facing challenges in the implementation of the rule, seek expert advice.  A few hours of guidance could save you thousands in legal consequences.