With a broad new class of workers becoming eligible for overtime, many small businesses are scrambling to figure out how to factor the regulations into their bottom line.
The Obama administration announced the final details of new labor rules to increase the salary cutoff for overtime pay. Although the plan was outlined a year ago and employers have several months to comply, many say the change will be a challenge to small businesses that pride themselves on a scrappy, entrepreneurial culture.
Currently, salaried employees who earn more than $23,660 a year and meet other criteria are not entitled by law to overtime pay, which is 1.5 times an equivalent hourly wage after an employee works more than 40 hours a week.
The threshold is scheduled to roughly double, to $47,476, on Dec. 1. That means millions of workers who were salaried will have to have their hours tracked to see if they qualify for overtime pay.
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