Rifle Area Chamber Chat: Are you ready for new overtime rules? | PostIndependent.com

Rifle Area Chamber Chat: Are you ready for new overtime rules?

Kim Burner
Rifle Area Chamber of Commerce

When the Fair Labor Standards Act was first enacted in 1938 it established standards for minimum wage, overtime pay, record-keeping and youth employment.

Over the years there have been many changes to the standards, the last in 2004. The most recent changes are set to take effect Dec. 1.

The changes will primarily affect salaried workers who fall under the white-collar exemption. Currently, if a salaried employee makes $455 per week or more they are most likely exempt from overtime pay. This threshold will double to $913 per week or $47,476 per year starting in December.

This means that 35 percent of full-time salaried workers will be automatically entitled to overtime pay, based solely on their salary. This change will affect an estimated 72,582 workers in Colorado.

As an employer, this change leaves you with few options. If it is infeasible to increase salaried employees’ wages to the new minimum, you will be forced to either pay overtime wages or limit employee hours. The final rule does allow up to 10 percent of the salary threshold for employees to be met by non-discretionary bonuses, incentive pay or commission, provided these payments are made on at least a quarterly basis.

The salary threshold will automatically update every three years, with the next increase set to take effect Jan. 1, 2020. Each update will raise the threshold to the 40th percentile of full-time salaried workers in the lowest wage census region, estimated to be $51,165 in 2020.

The Department of Labor will post new salary levels 150 days in advance of their effective date, beginning Aug. 1, 2019.

For more information on the Overtime Final Rule contact us, your business accountant or go to http://www.dol.gov/overtime.

Kim Burner is the membership services director at the Rifle Area Chamber of Commerce. To contact the chamber, call 970-625-2085 or visit http://www.riflechamber.com.


Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.