Virginia at Work: Overtime pay is about to change

Local News
overtime pay 2_1473727616937.PNG

9/18/16 UPDATE:

Below are two podcasts that go into detail about how this law could affect company culture, and who could be affected once the law goes into affect December 1, 2016.

For more insight on how this can affect team morale, listen to part one of our podcast on possible company culture concerns.

To learn more details on who will be exempt from this law, listen to part two of our podcast discussing the rules for specific employees.

___________________________

9-11-16:

The countdown is on and employers are scrambling to get all the facts, as a new law will soon mean millions more workers across the country will get overtime pay.

According to the United States Department of Labor, starting December first, employees must make a minimum of $47,476 a year to be considered salary.

Anyone who earns an annual income less than that, could be eligible for overtime pay according Fair Labor Standards Act. It’s a federal law, the government says will extend overtime pay protections to over 4 million workers within the first year.

Roanoke attorney Tommy Strelka practices employment law and adds the Obama administration estimates this change in the law means more than $12 billion will be paid in additional overtime funds to our country’s labor force in the next 10 years.

In this day in age, of a 24/7 workforce and economy, both Strelka and executive consulting coach, Lynda McNutt Foster agree things could get tricky.

“Sending email, or making a phone call or two, or filling out some paperwork after business hours from their couch, on their laptop, while watching Game of Thrones, in the morning before they take a shower … Under the change of the law if that employee is not being paid  $47,476 in salary, you owe them overtime now,” says Strelka.

From an executive coaching standpoint, Foster adds, “We talked about how important it was to map and measure your time. Now it’s mission critical. How long are these tasks taking? Have you been measuring that? If you send an email out at midnight, as a leader, because it’s the first chance you’ve had to get back to them, does your employee know they don’t have to get back to you then? So a lot of communication is going to need to happen when this new law comes into play.”

You can also listen to this podcast to hear our conversation with Tommy Strelka and Lynda McNutt Foster about the work that needs to be done, to fully understand this law and all of its ramifications. Click here, to read an article Foster authored about the communication that must happen to help workplaces make a smooth transition.

If you have any questions, you can email questions to bfreemal@virginiafirst.com, or via Facebook, Becky Freemal Fox Roanoke. Strelka can help field any legal questions, and Lynda McNutt Foster can help when it comes to communicating information or any concerns with your team.

Copyright 2019 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

News tips

Do you have a news tip or breaking news to share with WFXR?  Submit your tip here.

Latest News

More News

News Tip Form

Download the WFXR News App