Overtime for Exempt Employees

The new year has brought some new regulations along with it. Specifically, there are new requirements for overtime pay for exempt employees. Many businesses — particularly small businesses — will attempt to avoid having to pay their employees overtime by classifying them as exempt employees, even if they really are not. Of course, these sort of shenanigans have led to abuse and the US government is trying to stop such abuses.

Effective January 1, 2020, exempt employees must be paid more than $684 per week. If they are not, then they are, by definition, non-exempt employees and must be paid overtime for work in excess of 40 hours per week.

This leaves a business owner with two basic options: (1) pay the exempt employees more or (2) treat them as non-exempt.

For more information, click here.