In May 2016, a federal overtime rule that has been in the works since 2015 became official. Starting Dec. 1, 2016, the U.S. Department of Labor will require companies to pay employees earning $47,476 or less per year overtime for every extra hour of work.
Not surprisingly, the provision has sparked debates about long-term effects. Proponents of this regulation believe the new mandate will ensure that qualifying employees get paid for all of the time they spend working. Those opposed to the regulation feel that some small businesses or universities won’t be able to sustain the additional sum of money they’d have to pay workers each year. According to The Washington Post, the vice president of human resources at one university predicted that the measure would demand an additional $18 million annually, which is the equivalent of a 4.3 percent tuition hike.
Regardless of the far-reaching positive or negative repercussions from the new law, this much is certain: Human resources departments will have a lot of workflow adjustments to make between now and December. 1, 2016. Adjusting to the new overtime rule will be easier for businesses that have strong operational reporting.