Follow Adam Linkedin Twitter Facebook
Email Adam Email
Financial
Aug 23, 2016

Complying With New Federal Overtime Regulations

Sponsored Content provided by Adam Shay - Managing Partner, Adam Shay CPA, PLLC

Earlier this summer, the Department of Labor updated the Fair Labor Standards Act (FLSA). The regulations regarding overtime pay for white-collar workers were last updated in 2004. The new changes take effect Dec. 1. 

If you are a business owner, it is fairly likely this will affect your business, so please make sure you familiarize yourself with the changes and work with someone to determine a strategy, as appropriate.

The FLSA requires certain employees that do not fall under an exemption to be paid overtime if they work more than 40 hours a week. The change taking place in December is in the dollar threshold for which exempt employees can be excluded from overtime pay requirements. 

Some of the professions and positions that can be exempt from the overtime pay rules are:

  • Learned professionals (CPAs, for example)
  • Creative professionals (musicians or writers, for example)
  • Law or medicine (must hold a valid license or certificate)
  • Teachers who hold a certificate (those without certificates may still be subject to overtime rules)
  • Outside sales
  • Computer occupations
  • Executive employees
  • Highly compensated employees
  • Administrative employees (certain duties must be met to qualify)
If the employee is paid at a certain salary level, he or she is exempt from tracking time and overtime pay. Previously, the salary level was set at $23,660. With the new regulations, the salary level increases to $47,476. 

If the employee is considered exempt but is paid under $47,476, then you must track his or her time to monitor and pay overtime. If you have an exempt employee you are currently paying $45,000, it may save you time, money and headache to go ahead and bump compensation above the $47,476 limit. 

Another notable change with the new regulations is that beginning Jan. 1, 2020, the salary level will be updated every three years. 

We encourage you to be proactive and start evaluating any changes you need to make now. There are strategies you can employ to optimize this potential additional expense. 

Adam Shay, CPA (N.C. License Number 35961), MBA, is managing partner of Adam Shay CPA, PLLC. He focuses on minimizing taxes and improving the financial results of entrepreneurs, and is actively involved in supporting the Wilmington entrepreneurial and startup community. For more information, visit http://www.wilmingtontaxesandaccounting.com/ or email him at [email protected]. He can also be reached by phone at (910) 256-3456.
 

Other Posts from Adam Shay

Adam shay blk 52015121549
Ico insights

INSIGHTS

SPONSORS' CONTENT
Billhunter300x300 b&w

Is Your Phone Listening?

Bill Hunter - Wilmington Design Company
Natalieenglish 3301715113

Advocacy: The Heart of the Chamber

Natalie English - Wilmington Chamber of Commerce
Lyleheadshot2017 1251720228

Measuring Nonprofit ROI

JC Lyle - Wilmington Area Rebuilding Ministry

Trending News

In Wrightsville Beach, Office Building Sells For $1.3M

Cece Nunn - Aug 19, 2019

ILM Seeks Proposals For Another Aviation Services Provider

Christina Haley O'Neal - Aug 19, 2019

Pawsome News: New Pet Daycare And Retailers Opening In Wilmington

Johanna Cano - Aug 20, 2019

Public Forums Draw Questions About NHRMC's Future

Vicky Janowski - Aug 20, 2019

WHQR Announces New Board Members

Christina Haley O'Neal - Aug 20, 2019

In The Current Issue

Advocating For Realtors

Anne Gardner, the new CEO of Cape Fear Realtors, talks about her role leading one of the region's largest trade associations....


ILM Passenger Numbers Trending Up

The number of travelers using the growing Wilmington International Airport has soared each month in 2019 compared to the same month the prev...


Battleship Opens New Tour Section With Food Focus

An area landmark has a new tool for providing insight into the daily lives of the men who served aboard the World War II vessel....

Book On Business

The 2019 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

WILMA's Leadership Accelerator
Power Breakfast - The H Word (June 13, 2019)
2019 WilmingtonBiz Expo Keynote Lunch - CEO, nCino, Pierre Naude`