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The new overtime rule may affect Florida businesses

Companies in Miami have the freedom to set the pay scale for their employees according to the best interests of the business, as long as they follow the wage and hour laws set by state and federal governments. These regulations include both the minimum wage and overtime regulations, as well as exceptions and other issues that may affect a business, such as the type of industry, the age of the employee, the size of the company and others.

Federal employment law states that overtime pay is 1.5 times the amount of an employee’s regular hourly wage for hours worked beyond the standard 40-hour workweek. Although federal wage and hour laws have not changed much in recent years, the U.S. Department of Labor is making an adjustment to the overtime threshold that some believe will have a negative impact on many companies.

The changes, which are scheduled to begin Dec. 1, 2016, will require businesses to pay their employees overtime unless they are making $47,476 or more per year. Currently, the percentage of employees who receive a salary is very low because an employer does not have to pay overtime when the worker makes at least $23,660 annually.

Numerous employers may walk a fine line as they meet the needs both of the company and the workers employed there. Policies and procedures must follow all federal guidelines while still allowing the business to compete successfully in the marketplace. When determining the best way to make changes, employers may benefit from the advice of an attorney who is familiar with the laws.

Source: NPR, “Millions to Be Eligible for Overtime Under New Obama Administration Rule,” Scott Horsley, May 17, 2016

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