If you are like many people in the workforce whose annual salary has surpassed $23,660, the days of completing a weekly timesheet likely remain but as a vague memory; but thanks to a new federal regulation regarding overtime pay, anybody making less than $46,476 a year will now likely face increased scrutiny over their salary, time, as well as their job duties. Below are some likely outcomes of these new regulations.
- Salary Evaluations - It is likely companies will need to evaluate employee salaries (especially those close to the threshold) to determine whether or not a small raise becomes economical. I am sure a raise sounds good, until you realize a raise of a few hundred dollars might cost you thousands. It is also possible that someone a rung or two below you might make more than you once overtime is accounted for. Employees should prepare themselves for these negotiations.
- Increased Scrutiny of Time and Duties - Employees below the exemption threshold should expect increased scrutiny of time and duties in the form of time sheets and status reports to justify any additional hours.
- Benefit Changes - Changes to employee classification can unfortunately have negative consequences to employee benefits. It will be important for employees to understand these changes.
- Law of unintended consequences - The new regulation will likely render obsolete the flexible work schedule of many in today's work force. Checking email after hours, asking your boss to leave early this week to simply make it up next week, might become a thing of the past; at least for anyone making below $46,476.