Do you have employees? Then you need to know about some important wage and hour law changes coming in 2020 for employers.
Many employers mistakenly believe that if they pay employees a salary, they don't need to pay them overtime. That is mistaken.
New federal rules are coming that make over one million employees newly eligible to receive overtime. If an employee is eligible for overtime, an employer will have to pay time and half for all hours worked over 40 in a week.
The final rule updates the earnings thresholds necessary to exempt executive, administrative, or professional employees from the FLSA's minimum wage and overtime pay requirements, and allows employers to count a portion of certain bonuses (and commissions) towards meeting the salary level.
In the final rule, the Department is:
It's important to note that if you are not pay salaried employees the minimum level, you'll need to pay overtime.
For hourly workers, changes are coming on a state level. Beginning on July 1, 2020, the minimum wage in Pennsylvania will be $8.00 per hour. In January 2021, it will be $8.50, $9.00 by July 2021, and $9.50 on Jan 1, 2022.
Evaluating wages is also a great time to take a look at all of your employment policies and procedures. Are you using the proper non competes, non solicitation and non disclosure agreements?
Set up a call with our legal staff today to discuss how we can help with your labor law compliance.
Sarah E. Holmes is a Philadelphia business attorney and strategist that helps start ups and established businesses looking to expand, protect their assets and increase their profits in an approachable, down-to-earth way. When you're looking for a business lawyer in Philadelphia, the Main Line or New Jersey, we can help.