Overtime Law Change - Any info?

[Mike]

I was at a meeting today that was geared more towards the industrial employer and this was the topic of the meeting. The link to the news article is below,

http://www.panews.com/2016/10/18/overtime-laws-will-be-changing/

I work as an outside sales rep with a meager salary and my pay is heavily commission based. My commissions make up 75% of my pay. We have always been considered exempt employees and not eligible for overtime pay but our salaries are well below the minimum of $47,476.

Does anyone have any inside knowledge of this change?

[talltexasshoote]

Nothing will come to light until after the election. It was originally spun by the democrats as them fighting for the oppressed common man. It is really a way to bump wages, inflation and taxes. Texas along with 28 additional states have a lawsuit pending. I'm in the restaurant business, this legislation promises loss of jobs in the industry. Less educated employees who have climbed the ladder will be most effected.

[Burnadell]

The Department of Labor (DOL) recently adopted far reaching regulations on how retirement accounts must be managed, and I believe they also made a number of changes to the labor laws...but I am of no help there.

Google DOL new laws or something to that order.

[Mike]

I found a few things, sounds like a lot of spin but it will cost some businesses a lot of extra payroll. They still have the exemptions in place for sales and executives though.

[rferg84]

Yep. Basically the raised the minimum salary to 47k ish was 23k ish.

What it means is I have 5 salaried employees who I do not track time on who's base is less than that (could make more with commission and bonuses) I have to pay overtime to if they work more than 40 hours a week. As a small business owner it puts another layer of compliance that costs me more money. Basically all my employees are now on a time clock and not allowed to work more than 37.5 hours a week.

If I don't track it, someone will get fired and turn around and sue me for overtime I didn't pay them. Well if I don't have documentation I'll lose.

[rferg84]

You can only use a certain % of commission when determining overtime pay.

There is also an exclusion for educated professionals (think teachers, engineers, etc) and outside sales reps. If the majority of your job is outside sales you may be exempt from it.

[Atfulldraw]

it's a nightmare.....

I'm currently on a mix of commission and some sort of hybrid salary.

If I don't fill out any invoices for the week, they pay me $454 or something like that, then they take that prior paid amount out of my commission when they pay me the next week, or the following week if I go two weeks without sending in an invoice.

Starting in December, that weekly amount will change to something like $900,

and there is yet another complication as some of us are also considered HCE, but you can't figure that out until May or June every year, but they know we work way more than forty hours a week......and on and on and on.

honestly, I can't even keep up with it, and I'm not sure my employer can either.....

[Juice]

Looks like it will depend on how much you make in commission. In you attach article is says commission will factor into salary.

[Mike]

https://www.dol.gov/whd/overtime/fs17f_outsidesales.pdf

This clears a lot of the outside sales portion, more or less, if you work away from the office you are exempt from the new regulations,,,

[txtimetravler]

Going cost is
About $200k to move employees up to min for a year


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[SmTx]

We're waiting to hear our fate at work as well.

[txtimetravler]

Just what till you have to deal with tenured employees at the $50k mark that are making a bit more than a new employee that started dec 1.


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[SmTx]

Funny how the government has decided what's best for those of us on base salary + other comp plans.

My company has historically paid the majority to management in profit sharing. Lean years we don't make much more than base salary but the good years we can make a whole lot more.

I can see this causing me to make even less money overall after the profit sharing is cut down significantly or out all together to make up for the salary increase.