The Department of Labor, under the Obama Administration, is finalizing a rule to update overtime protections for workers which is expected to extend overtime protections to 4.2 million more Americans currently not eligible under federal law. The rules will boost wages for workers by $12 billion over the next 10 years, and will impact nearly every sector of the U.S. economy, including nonprofits, retailers and hospitality (hotel and restaurants), having management-level workers whose salaries are at or below the new threshold. Many businesses will be compelled to put software, systems and processes in place to not just help them comply with new wage and hour rules, but also provide support personnel with better employee management, scheduling and labor cost containment.
For more information, read the articles covering this topic, and related issues, in the White House Briefing Room articles at this website. As these rules are rolled-out, ProAdvisors, especially those supporting payroll clients, will want to insure that they are completely familiar with all the details so they can assist their clients in implementation in the most expeditious and cost-effective manner.