NEW YORK -- Overtime has suddenly become a confusing proposition for some small-business owners.þþNew government rules that took effect Aug. 23 change the criteria under which employees must be paid overtime. That means company owners need to look at all of their employees and determine whether each should now be receiving overtime--or might now be exempt from overtime.þþGenerally, under the new rules, the majority of employees who earn less than $455 a week, or $23,660 a year, automatically qualify for overtime. Those who earn $100,000 generally do not have to be paid overtime.þþFor employees whose pay falls between those levels, owners will have to do an analysis of their jobs to determine whether they can be exempted from the rules. Basically, only those whose jobs can be classified as executive, administrative, professional or in an outside sales capacity are exempted. So are some computer employees.þþThose are the basics. Owners will need to look at the rules, and also need to look at the many exceptions, not just to job classifications, but also to salary requirements.þþThe Labor Department's Web site at www.dol.gov/esa/regs/compliance/whd/fair pay/main.htm has explanations of the rules, including a PowerPoint presentation with an overview, and ÿfact sheetsÿ that go into more detail.þþFor example, the site describes an administrative job as follows:þþÿThe employee's primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer's customers; andþþÿThe employee's primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.ÿþþIt sounds straightforward, but human resources professionals warn that doing an analysis of employees' jobs and salaries can be tricky.þþÿThere are some gray areas--it's not so cut and dried,ÿ said Rob Wilson, president of Employco Group, a Chicago-based firm that handles payroll and benefits for small businesses.þþ
Source: Chicago Tribune
