Minding the Gap: Implications of New Overtime Pay Rules

Adequate preparation and increased communication will be key tools for business owners when implementing new overtime rules later this year, according to panelists at a CFO Restaurant Roundtable presented by Citrin Cooperman and Becker LLC.

The U.S. Department of Labor’s new Final Rule announced earlier this year focuses primarily on updating salary and compensation levels needed for executive, administrative and professional workers to be exempt and more than doubles the current minimum salary that must be paid to treat employees as exempt. Starting December 1, owners will be required to pay managers a salary of at least $47,476 per year to remain exempt. 

Other provisions include:

setting the total annual compensation requirement for highly compensated employees subject to a minimal duties test to the annual equivalent of the 90th percentile of full-time salaried workers nationally, $134,004; establishing  a mechanism for automatically updating salary and compensation levels…