Business across the country have been busy adjusting for changes in overtime laws that were set to take affect this month. The salary level that makes an employee exempt from overtime pay was greatly increased. Under the new law, an employee must make at least $134,004 to be considered for the “highly compensated employee” exemption.
However, an interesting development has occurred. Last week, a federal judge in Texas ruled to halt the new overtime laws, which were supposed to begin on December 1st. The new overtime laws had been challenged in court by many business groups, and the judge ruled that the Labor Department overstepped its bounds by making such a large increase in the salary limit.
How are businesses reacting? Some are moving forward with the planned changes they had made to comply with the new law, since it can be expected that the Labor Department will fight the ruling. Other businesses are taking a wait-and-see approach.
Earlier this year, we made some recommendations about how your business could adapt to these new laws by creating a strategic cost-cutting plan. We don’t know how this ruling will end up, but we do know that taking a closer look at your businesses expenses is always a good idea. Even if your workforce or pay structure changes, you’ll know that you are doing the very best for your bottom line.
Working with Silverback is simple; all we need is your bills from the previous month to begin finding ways to save your company money. You can watch this video to learn more about what we do, and contact us when you’re ready to get started.
The world of business is constantly changing, and with a new administration headed to the White House this January, you can probably anticipate that more changes might be coming your way. Cutting your expenses helps prepare you for whatever may come, and allows you to focus on what you do best – running your business.
