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The new federal rules on overtime take effect in less than two weeks, granting an estimated 3.9 million workers nationwide overtime protection. So what are businesses doing about it?
According to a survey by the New York Federal Reserve Bank, most businesses plan to take no action for workers who are newly eligible for overtime, while 15 percent of manufacturers and 22 percent of service firms said they would raise the salary levels of newly eligible workers so they would remain non-exempt, and 21 percent of manufacturers and 22 percent of service firms said they would reduce employees’ hours. (Respondents were asked to choose all answers that applied.)
Learn what you need to do for the new overtime rules with NJBIA’s FastFacts compliance brief. NJBIA Members can download it for free (login required).
On Dec. 1, the legal salary threshold for nonexempt workers will nearly double to $47,500 annually, meaning any workers paid a salary paid less than that threshold would be entitled to time-and-a-half for any time worked over 40 hours per week.
The survey covered businesses in New York, northern New Jersey and southern Connecticut.