The number that means everything on 12/1/16

$47,476.00 is the number that is going to mean everything in December of this year.  Those who make more, will be exempt from the overtime rules.  

What if some of your compensation is in the form of a bonus?  From my understanding employers can only include 10% of your wage as a bonus.  

From a Management or Business Owner's perspective, what are some options?

1.  Keep salaried employees who are now eligible from working more than 40 hours a week.  This means you will now need to start keeping track of salaried employees hours.
2.  Pay the time and half overtime and let the chips (expenses) fall where they may.
3.  Raise employee's salaries beyond the threshold.
4.  Convert salaried employees to hourly.

David Reid, CEO of human resources and benefits company EaseCentral, told Business News Daily he expects many entrepreneurs to convert salaried employees to hourly wages in the wake of the change.  If you'll have them work additional hours, pay raises are going to come more in the form of overtime in these small businesses," Reid said, referring particularly to small businesses with around 15 employees. "I don't think the mentality of the small business owner is to give somebody a raise over the cap. I think they're going to sit back and realize that what used to not be additional pay for additional time at work will now be overtime pay, and that will be used in lieu of giving a pay raise." 

Exemptions?  Exemptions anyone?

• Administrative (ambiguous)
• Professional (vague)
• Executive (indefinite)
• Outside Sales (you are never getting overtime)
• Computer (muddy)  But, your title may be changed to one of these to classify you as exempt:   computer systems analyst, computer programmer, software engineer,

So, nearly everyone is exempt.

Valerie Samuels, a partner in the law firm Posternak, Blankstein & Lund LLP, said the rule change will also lift the exemptions on employees who were categorized as an executive, professional or administrative, but who weren't truly working in any of those capacities.

"I think employers need to sit down with their employment counsel and take a hard look at all their employees to make sure they are properly classified. If not, they have to address that, because they'll have a liability," Samuels said, adding that in some states, failure to pay required overtime will incur "triple damages." 

Will you have to hire an attorney to get your overtime?

Sources:   Adam C. Uzialko, Business News Daily Staff Writer "What you need to know about the New Federal Overtime Rules" and The U.S. Department of Labor "Small Business White Collar Exemption Guide"