For the most part, the rules and stipulations surrounding overtime in the United States have remained relatively unchanged over the course of the past few decades. This is in spite of the fact that much criticism surrounds the topic of overtime in the U.S. However, President Barack Obama is hoping to modernize these standards and revise them in a manner that is beneficial for all.
Introduced in 2014, the new rules surrounding overtime won’t actually take effect until December 2016. While employers have plenty of time to prepare their staff and update their day-to-day operations to accommodate the pending changes, those who wait until the very last minute might find themselves in a sudden race against the clock.
Offering Overtime or Hiring Additional Workers?
The most notable change in the new overtime regulations is the increase in salary threshold that is used to determine an employee’s overtime eligibility. Whereas this threshold has remained at $455 per week for quite some time, the new standards raise this threshold to $913. Furthermore, the new guidelines dictate that this threshold will now be automatically updated, a rate of once every three years, in order to accommodate current trends.
Employers are left with a tough decision. On one hand, raising the salaries of your most valuable workers is a viable option for many. While this will increase the overtime eligibility of your full-time roster, it’s obviously going to cost you.
Conversely, you can simply hire additional workers to make up for the missing overtime hours of your regular employees. This can also be costly, especially when you factor in the overall number of new hires as well as their starting wages and benefits, but it’s worth considering when searching for the best available option.
As you can see, there are pros and cons to both approaches. While most employees will welcome an increase in salary, they might not be too thrilled about any overtime requirements that come along with it. Moreover, employees who actually want the additional hours may be upset when you start bringing in additional workers in lieu of offering overtime.
Update Your Office Policy
Don’t forget to update your office policy to reflect the new guidelines and standards. Again, this process is best completed ahead of time and before the new rules take effect. This ensures that your entire team is familiar with the new rules and ready to abide by them.
Moreover, make sure to review and update your office policy on a regular basis. Not only does this keep new information fresh in your mind, it lets you stay on top of any changes that may happen in the future.
Finally, ensure that your office policy is easily accessible by your entire staff. There’s no use in having a detailed policy if your employees can’t even view it, so try to publicize any new or revised policies as much as possible.
Work With a Leader in Industrial Staffing in North Carolina
If you feel your company would benefit the most from hiring additional staff during this upcoming overtime change, don’t hesitate to work with a leader in staffing in North Carolina and to contact Mega Force. Our team will find the best workforce management solution for your organization!