How New Overtime Rules May Affect Your Small Business

[Fit Small Business]( Expert Insights on HR June 19, 2024 Our Expert’s Topic for the Week: How the New Overtime Rule Affects Your Small Business The new overtime rule would make more workers eligible for overtime pay, but employers may find it difficult to manage payroll budgets given the additional payouts. However, lawsuits from several business associations in Texas seek to block the new rule. While it’s unlikely that these cases will be resolved before the planned July 1 implementation date, employers should continue to monitor the progress of these lawsuits to determine the next steps. - Jennifer Soper, Robie Ann Ferrer, & Genevieve Que   Stay Current   The US Department of Labor (DOL) has increased the standard salary rate and highly compensated employees total annual compensation threshold for exempt employees. - Effective July 1, 2024: - Standard Salary Rate: $844 per week (equivalent to $43,888 per year) - Highly Compensated Employees Total Annual Compensation Threshold: $132,964 per year, including at least $844 per week paid on a salary or fee basis - Effective January 1, 2025: - Standard Salary Rate: $1,128 per week (equivalent to $58,656 per year) - Highly Compensated Employees Total Annual Compensation Threshold: $151,164 per year, including at least $1,128 per week paid on a salary or fee basis - Rates will change once more on July 1, 2027 and every 3 years thereafter Here are the articles covered in today's edition. - [How to Calculate Overtime]( - [Shift Differential Policy: Small Business Guide]( - [Minimum Wage Exemptions & Overtime Exemptions](   [How to Calculate Overtime (+ Free Overtime Calculator)]( [How to Calculate Overtime]( According to the Fair Labor Standards Act (FLSA), you must pay at least 1.5 times the employee’s regular pay for hours worked by non-exempt employees over 40 hours. Since there is no legal limit on the number of hours employees who are 16 or older can work in a workweek, you must determine whether you have to pay them overtime or not.   [Shift Differential Policy: Small Business Guide (+ Template)]( [Shift Differential Policy: Small Business Guide]( A solid shift differential policy helps attract and retain employees for less desirable shifts. It also ensures fair compensation for those working overtime during evening, night, or weekend hours.   [Minimum Wage Exemptions & Overtime Exemptions Under the FLSA]( [Minimum Wage Exemptions & Overtime Exemptions Under the FLSA]( There are exemptions to the wage and overtime pay rules, but these are carefully defined by the Fair Labor Standards Act (FLSA). You should know these guidelines to ensure compliance with federal regulations and labor laws.   Based on Your Latest Reads   [35 Funny Sales Memes You Can Relate to]( We rounded up 35 of the most relatable sales memes you can share with your team. See how these memes capture the reality of sales life. [What a Cash-basis Taxpayer Is & How Cash-basis Accounting Works]( A cash-basis taxpayer records income once payment is received and records expenses at the time that payments are made. [Key Beauty Industry Statistics to Know in 2024]( Read about the key beauty industry statistics shaping the landscape. We cover top skincare, makeup, haircare, and marketing stats. Did you know? 🤔 There's more beyond the newsletter? Follow us on social media to stay informed on exclusive insights, resources, and sneak peeks into the latest trends in HR!   Latest in HR   [Best Time Tracking Software]( The best time-tracking software ensures accurate payroll for hourly staff, assigns labor costs to jobs, and uses employee hours to track projects and bill customers. Plus, it calculates and notifies when employees are accruing overtime.   [Best Time and Attendance Software for Small Businesses]( The best time and attendance software is designed to help employers efficiently monitor the working time of employees. It can track actual hours worked, overtime, absences, and leave balances while keeping you in compliance with labor laws.   [Best Payroll Software]( The best payroll software for small businesses calculates employee wages and deductions accurately and pays and files payroll taxes automatically. Most offer unlimited pay runs, time off tracking, two-day direct deposits, employee self-service portals, and access to employee benefits. More FSB Resources   More Than A Newsletter   Written by Jennifer Soper, Robie Ann Ferrer, & Genevieve Que About Fit Small Business HR Newsletter: Providing you with newsworthy tips, tricks, and informational deep dives on all HR and Payroll topics relevant to small business owners. Delivered to your inbox every Wednesday. [Sign up today]( Visit the [Subscription Center]( to get other free newsletters, manage your account settings or to be removed from Fit Small Business communications. 0[Unsubscribe](