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
Headshot2 3182020512

How To Protect Your HVAC From Hurricanes

Chris Jones - Green Dot Heating & Air
Carolinemontgomery4

PPP Forgiveness - What You Need To Know

Caroline Montgomery - Adam Shay CPA, PLLC
Dave sweyer 300 x 300

Virtual Tours, Self-Guided Showings Allow Rental Market To Thrive During Covid-19

Dave Sweyer - Sweyer Property Management

Trending News

Publisher’s Note: What Didn’t Happen Last Night

Rob Kaiser - Jun 1, 2020

Businesses, Law Enforcement Take Stock Of Protest Aftermath

Staff Reports - Jun 1, 2020

Friday Deadline For County's $10K Small Business Grants

Cece Nunn - Jun 1, 2020

In The Current Issue

Info Junkie: Rhonda Bellamy

Rhonda Bellamy, executive director of the Arts Council of Wilmington/New Hanover County, shares her top tech and info picks....


WorkTok Aids Communication

One new Wilmington startup is trying to address those current workforce trends and increase employee/ employer interaction through its app,...


Phases Aim To Aid Economy Safely

Included in our new lingo these days besides “social distanc­ing” (staying 6 feet apart) and COVID-19 (the novel coronavirus) are “phase one...

Book On Business

The 2020 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2019 Health Care Heroes
August 26, 2019 Power Breakfast: A Healthy Sale?
2019 WILMA Leadership Accelerator
2019 WilmingtonBiz Expo Keynote Lunch - CEO, nCino, Pierre Naude`