Why Mid-Sized Construction Businesses Should Pay Attention to the New Federal Overtime Rule
Employers who fail to prepare for upcoming changes to the Fair Labor Standards Act (FLSA) salary threshold overtime exemption may find themselves in hot water. If you’re just now beginning to plan for changes to federal overtime regulations, you likely have some catching up to do. These changes have been in the works for nearly four years, and in this article, a Nashville contractor attorney from Cotney Attorneys & Consultants will discuss why these changes are important and what mid-sized construction businesses need to pay attention to during this transitional period.
The Central Issue
Legal experts have been dropping hints for years now, but it’s worth stating again: employers must be prepared for changes in worker overtime eligibility requirements. Essentially, construction business owners need to decide whether they will pay eligible workers overtime or bump their pay to reach the new $35,568 threshold. In order to make this decision, employers should run a cost and benefit analysis to see whether or not increasing employee wages is the most effective method for controlling labor costs. Performing a comprehensive internal review of your current workforce may also help you identify incorrectly classified employees.
Time Tracking Is Essential
Do you currently track your workers’ time? If not, how can you validate whether or not an employee’s performance meets expectations? Furthermore, how can you be certain that they are actually earning the wages you are paying them? Companies that already have solid time-tracking protocols in place will find that maintaining compliance with the new federal overtime rule is much easier than companies that have failed to integrate time-tracking into their day-to-day operations.
Consult a Nashville Contractor Attorney
As a construction business owner, honoring the rules and regulations contained within the Fair Labor Standards Act (FLSA) is essential if you want to keep your business running smoothly. As you take on new projects, hire new workers, and grow your business, it’s helpful to have a Nashville contractor attorney on your side to ensure your business is maintaining compliance. For assistance transitioning your business operations to comply with the new federal overtime rule, consult one of the Nashville contractor attorneys at Cotney Attorneys & Consultants.
If you would like to speak with one of our Nashville contractor attorneys, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.