What is the Final Rule all about?

This policy was announced by the Department of Labor on 5/18/16. This is a federal rule that affects who gets overtime pay. Basically, all salaried employees earning less than $47,476 a year or $913 a week will be eligible for time-and-a-half overtime pay. This rule will be effective on 12/1/2016. You'll need to start tracking hours to ensure that your company is compliant with this new rule, see FLSA record keeping policy.

Does Final Rule apply to me?

This rule applies to your company, if you have employees earning less than $47,476 a year or $913 a week. This applies to businesses in ALL states. This rule excludes teachers, doctors, lawyers and outside salespeople.

What are my options?

• Pay time-and-a-half for overtime work.
• Raise workers' salary above the new threshold. For 2016, the threshold is $47,476/year or $913/month.
• Limit workers' hours to 40 per week.
• Some combination of the above.

Key stats

• The equivalent hourly rate is $22.825 for the $913 weekly threshold.
• About 35 percent of full-time salaried employees will be automatically eligible for overtime, up from the current 7%.
• Labor Department estimates 4.2 million people will become eligible for overtime

How do I keep track of employee hours?

IDEAblox Time Clock has a simple way for employees to clock in & out. Over 250 businesses use it on a daily basis. Try the 30 days free trial to see if it works well for you.