The overtime rule
In August, a Texas judge’s ruling largely defanged the Obama administration overtime rule, which more than doubled the salary threshold at which workers are exempt from overtime to $47,476, or $913 per week. Barring an appeal to that ruling from the Department of Labor, Brown says operators should prepare for a new threshold in the $600 range. “Look at anyone you employ with a salary just above or below $650 a week,” said Brown, an attorney at law for Fisher & Phillips LLP in Atlanta. Brown recommends operators think long-term: move up a scheduled raise that would put workers above the threshold.
Brown also noted a way operators can exempt workers from the overtime rule without bumping their pay. Operators can bypass the rule if they designate team members as commissioned employees, who get a piece of the profits. “Not only does this have them meet the exemption, but it gives them a stake in how well the store is doing,” she said. Overall, Brown recommended to err on the side of caution when reclassifying employees.