HR mistakes cost more than small businesses can afford
This 8-part blog series highlights a few of the many laws that apply to all businesses or to those with 11+, 15+, 20+, or 50+ employees. We also provide best practice tips to help small businesses avoid costly mistakes. Many of our examples also apply to non-profit agencies and the public sector.
TIP 1: The Fair Labor Standards Act (FLSA) – Hello New Year! Hello New Rules!
FLSA 1938 is a federal law that provides guidelines for employers to determine whether an employee is:
- Exempt from overtime rules and pay; or is
- Non-exempt and therefore, must be paid overtime (1.5 times their hourly salary if they work more than 40 hours in a week)
As of January 1, 2020, the law has changed. If you have employees who are paid:
- LESS than $684/week (or $35,568 per year), then they are automatically eligible for overtime (the salary amount used to be $23,660 per year);
- OVER $35,568/year, it is no guarantee they are ineligible for overtime. In these cases, we must examine their job responsibilities in a number of different areas to determine if they are exempt from overtime. To determine an employee’s status, it is important to have a job description. For best practices on job descriptions, see Tips on Job Description
If you are not sure whether a person is eligible or exempt from overtime, call us. We can help write your job description and perform a test to determine if their status is exempt or non-exempt.
Questions? Contact us today!