Small businesses that don't comply with overtime laws may end up owing employees extra money in overtime. Fortunately, that's an issue that can rather easily be avoided.
The law is still undergoing changes, but business owners can get ahead of it by being prepared. Here's what small business owners should be aware of to make sure they're in compliance, according to Doug Greenhaus, an executive with NADA, and Bob Redding, Washington D.C. representative for ASA.
Pay Attention to duties—not position title.
Remember, it’s all about what they do and not what the position is called, Greenhaus says. Greenhaus gives an example:
“It doesn’t matter what they’re called, it’s what they do,” Greenhaus reiterates. “You can call her a tech, but if she’s ... just changing oil and tires, she’s not a tech and I need to pay her in a manner where she qualifies for the commission employee exemption—or she’s paid overtime.”
Stay on top of changes.
Laws are always changing, making it critical for all small businesses to pay attention to changes in the overtime regulations. Both Redding and Greenhaus anticipate new updates and announcements, including a possible change in the salary threshold coming down the line.
“The trade associations, ASA and others, will publicize it when there’s a final regulation on this,” Redding says.
Redding also suggests looking at the U.S. Department of Labor’s website to see where different amendments and updates are at from time to time.
“This is a big issue,” Redding says. “It is evolving and we’re going to see a final regulation coming.”
