New Employee Classification & Overtime Law to take effect on December 1, 2016

In casual conversations with people who own and manage businesses, I find that most do not know about or understand the upcoming employment law changes which will take effect on December 1, 2016. And those that do have an understanding have not planned to effectively deal with the changes. Unfortunately, there is only a short time left to implement new plans to stay compliant with the new law and avoid costly penalties.

The Department of Labor has made changes to the overtime laws. Essentially, changes have been made to employee classification definitions which determine which employees are exempt (they do not need to keep track of their hours), and which are non-exempt (they need to track their hours). These changes will now require many employees to be paid overtime, even if they currently are not. These changes will also have a dramatic and potentially costly impact on most businesses. Not to mention costly penalties if the business is not in compliance.

That's why I am on a mission to make sure all small business owners and managers fully understand this new employment law. And it is not only about compliance. There will be many other issues to plan for, such as strategy, administration, communication, documentation, (updating employee handbooks, offer letters, job descriptions, policies, procedures, etc.), employee morale, training, and managing. The first thing you need to do is an assessment of where the business is now in terms of employee classification and how the new law will impact operations and payroll costs. If it all seems overwhelming to you, Alliant Human Resources can help you prepare and make sure you are ready when December 1st rolls around. Please call us for a free initial assessment. We can come to you and look at the big picture. Just contact us to set up an appointment.

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