With new federal overtime laws taking effect soon and minimum wage changes on the horizon for many, restaurateurs and retailers are crunching the numbers to understand the impact the new rules will have on their businesses. If the numbers aren’t adding up to show profits, you may be looking for ways to operate more efficiently to counter the rising cost of labor.
Overtime Laws and Minimum Wage Increases 101
- New federal overtime laws take effect on December 1, 2016. At the end of the year, nonexecutive, non-administrative, and nonprofessional workers with a weekly salary of up to $913, or an annual salary of $47,476 per year, will be eligible for overtime pay. The salary threshold is now $455 per week or $23,660 per year. In addition, under the new overtime laws, overtime pay eligibility thresholds will be automatically updated every three years based on wage growth over time.