• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube
Big Ideas for Small Business logo

Barbara Weltman

Big Ideas for Small Business, Inc.

Whitepaper download

Subscribe and download our eBook, "150+ Tax Deductions for Small Business A to Z."

This field is hidden when viewing the form
Get the:

  • Home
  • About Us
  • Big Ideas For Your Business
    • Idea Of The Day ®
    • SMB Legal
    • SMB Taxes
    • SMB Financial
    • Small Business
    • Newsletter Archive
  • Services
  • Books
  • Blog
  • Multimedia
    • Videos
    • Radio Shows/Podcasts
  • Be a Guest Blogger

Overtime Rules: Get Ready for a Big Change

July 7, 2015 / By Barbara Weltman

Follow @BarbaraWeltman

© <a href="http://www.dreamstime.com/rido_info#res2965056">Rido</a> | <a href="http://www.dreamstime.com/#res2965056">Dreamstime.com</a> - <a href="http://www.dreamstime.com/stock-photo-man-working-till-late-tired-businessman-studying-office-image46379646#res2965056">Man Working Till Late Photo</a>Under the federal Fair Labor Standards Act (FLSA), employees who work more than 40 hours in a workweek and who are not exempt from overtime pay rules must receive overtime pay at a rate of not less than one and one-half times the regular rate (“time and a half”). There is no overtime pay required for work on Saturdays, Sundays, or holidays unless overtime is worked on these days.

How to figure overtime

Overtime is based on a workweek, which is a fixed and regularly recurring period of 168 hours (seven consecutive 24-hour periods). The workweek does not have to mirror the calendar week; it can begin on any day and at any hour of the day. The DOL says that averaging hours over two or more weeks is not permitted.

An employer can’t give comp time (time off at a later time) to avoid the overtime pay requirement if the comp time matches the overtime. This effectively denies the additional pay that a worker would receive for the overtime. However, if the comp time matches what would equate to overtime, then it is permissible.

Reminder: The U.S. Supreme Court ruled unanimously last year that a company doesn’t have to count the time that workers wait in line to leave the premises as work time. That case involved Amazon workers who had to go through security checkpoints when leaving the warehouse to make sure they weren’t carrying stolen goods.

What’s ahead

Overtime pay rules don’t apply to “exempt employees.” These are workers earning a salary over a set amount. Currently, this amount is $23,660 ($455 per week). This salary threshold was set in 2004.

Under a proposed rule posted on June 30, 2015, the threshold would increase to $50,440 ($970 per week) starting in 2016. It would also create a mechanism for automatically updating the salary level to keep pace with inflation. The change proposed by the DOL in response to a Presidential directive issued last year is expected to affect about five million workers.

You can submit comments on the proposed rule by following the instructions here. The deadline for comments is July 30 (30 days from the issuance of the proposed rule).

Impact of the proposed change

As in the case of proposed increases in the federal minimum wage, there are differences of opinion on what the impact of the proposed change in the overtime pay rule would be for small businesses. The National Retail Federation expressed opposition to the rule, suggesting it would lead retailers to use more part-time workers instead of giving overtime to its full-time staffers. The National Restaurant Association, after the President’s directive but before the issuance of the proposed change, expressed concern that the change could hurt rather than help workers. It’s certain that debate will continue.

What is also certain is the need for small businesses to factor this change into their budgets and operating plans. Undoubtedly, the change in overtime pay rules is going to cost small businesses more.

Conclusion

DOL Fact Sheets provide answers to various questions on overtime rules. If you have a question that you can’t find an answer to, check with an employment law attorney.

Tweet

Tags DOL employees Fair Labor Standards Act overtime small business workweek

Primary Sidebar

Categories

  • General Business (497)
  • Guest Blog (108)
  • Homepage (18)
  • Small Business (987)
  • SMB Financial (322)
  • SMB Legal (65)
  • SMB Taxes (324)

Barbara’s Recent Posts

  • The Numbers Are Up for Sole Proprietorships May 22, 2025
  • New Business or Project Crowdfunding: What To Know May 20, 2025
  • Old-School Estimating vs. Smart Solutions: What’s Really Holding You Back? May 19, 2025
  • Employees Getting Called to Public Service: What to Know May 15, 2025
  • Not Too Late to Prep for Summer Now May 13, 2025
  • How Will the Next Generation of Learners Affect the Workplace May 12, 2025
  • Moms Know Best: Lessons for Entrepreneurs May 8, 2025
  • Mental Health Challenges in the Workplace May 6, 2025
  • Let’s Celebrate Small Business! May 1, 2025
  • Scaling Your Business: Adding a New State Location April 29, 2025
  • What to Do about Waste Management in Your Warehouse April 28, 2025
  • Restrooms: Not Front Office but Just as Important April 25, 2025
Awarded Top 100 Small Business Blog medal (link will open in a new window or tab)
Marquis Who's Who 2023 Badge
Top Small Business Blogs (Link will open in a new window or tab.)
8 Financial blogs small business Owners Need to Read. Invoice home.  (link will open in a new window or tab)
Best Small Business Blog, Expertido.org
Top 50 Small Business Blogs 2018
Best Small Business Blogs
BizHumm Top 100 Business Blog Award to Barbara Weltman
FitsSmallBusiness.com: Award for Best Small Business Blog 2017 (link will open in a new window or tab)
FitsSmallBusiness.com: Award for Best Small Business Blog 2016 (link will open in a new window or tab)

Footer

Big Ideas for Small Business logo

Small business ideas, business tax news and small business consulting from Barbara Weltman to provide business owners with the information they need to succeed. Visit our small business blog, Idea of The Day®, small business books and articles on small business taxes, small business finance and small business legal advice.

Contact Us

[email protected]

(772) 492-9593

gacor maxwin situs slot thailand terpercaya situs slot gacor situs gacor akun pro thailand slot bandar togel terpercaya

Latest Tweets

bigideas4sb Big Ideas for Small Business® @bigideas4sb ·
May 23

Amazon debuts a warehouse robot with a sense of ‘touch’ https://tcrn.ch/3SqhN40

Reply on Twitter 1926043068001632281 Retweet on Twitter 1926043068001632281 Like on Twitter 1926043068001632281 Twitter 1926043068001632281
bigideas4sb Big Ideas for Small Business® @bigideas4sb ·
May 23

Should Your Business Be on Bluesky? An Industry-by-Industry Breakdown https://bit.ly/3EOVdit

Reply on Twitter 1926007082874007803 Retweet on Twitter 1926007082874007803 1 Like on Twitter 1926007082874007803 Twitter 1926007082874007803
bigideas4sb Big Ideas for Small Business® @bigideas4sb ·
May 23

The Numbers Are Up for Sole Proprietorships - https://bit.ly/3FddTZr #smallbusiness #selfemployed #startups

Reply on Twitter 1925972574267166970 Retweet on Twitter 1925972574267166970 2 Like on Twitter 1925972574267166970 2 Twitter 1925972574267166970
Load More

Copyright © 2008–2025 Big Ideas for Small Business, Inc  |  Designed by Hudson Fusion

  • Privacy Policy
  • Sitemap