Department of Labor Overhauls Overtime Ordinance

Anyone making less than $50,440 a year will be eligible for overtime pay, a 113-percent increase from the $23,660 threshold.  That’s the proposed change, a change of a kind that hasn’t happened in 12 years.  Not only that, but it’s slated to increase yearly afterwards, presumably to keep pace with inflation.  These new rules target salaried, white collar workers and managers




Changes like these significant create waves of effects that need to be considered.  Businesses may need to react in order to offset these effects; lowering salaries, less benefits and converting salaried employees to hourly are some of the forecasted responses.  A report from Fox Business reads- “Administrative expenses such as the added costs of tracking hours for more employees and updating of payroll systems were estimated to cost businesses $745 million.” – a stunning possibility.



Of course, not every analyst is against these changes. There are some who, like the President, think the benefits might out way the consequences.  In either case, navigating the ins and outs of labor costs and management becomes more volatile and complicated by the day.  That’s where we come in – Valley Distributing & Service has the expertise to guide your company through this and other laws and regulations.