Prepared for New Overtime Pay Rule? The new overtime pay regulation,
established by the U.S. Department of Labor, is set to go into effect on December 1. Under this new mandate, salaried employees making less than $47,476 per year (or $913 per week) must be paid for overtime, regardless of their title, job description, or managerial status. Te main exceptions are those who aren’t covered by the Fair Labor Standards Act (FLSA). In response to the new overtime rule,
employers can:
• Pay time-and-a-half for overtime work. • Raiser workers’ salaries above the new threshold.
• Limit workers’ hours to 40 hours per week.
• Some combination of the above. Source: U.S. Department of Labor
We polled arena operators across the
country, asking them how, or if, this new rule would affect their business. Teir comments are as follows:
“We will have to make some decisions on this. Almost all of our full-time employees make under $47,500 and work well more than 40 hours a week. Raising them to $47,500 to make them exempt is not an option. We will probably have to go the hourly route and hire more full- or
part-time people to cover hours or change the way we do business. We may have to raise prices, which is not the best idea as we have raised some prices over the last few years. In our whole company, as many as 15 employees may be affected.”
Kevin McCormack Arena Operations Vice President Floyd Hall Arena, Little Falls, N.J.
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“We run with seven full-time staff and limited part-time staff so overtime for any of our staff is limited — less than $2,000 annually.”
Dean Mulso
Recreational Facilities Manager City of Burnsville, Minn.
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“This new rule won’t affect us. We only have one salaried individual at this location.” Don Baldwin
Regional and General Manager Lloyd Center Ice Rink, Portland, Ore.
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“We have no exempt employees. We don’t allow a 4x10-hour schedule due to California’s overtime after eight-hour rule, so everyone is on the 5x8-hour day schedule, which some female employees hate, as they would rather work less days longer so that they can
be with their kids three days a week; divorced employees especially suffer.”
Philip Linssen Chief Executive Officer
San Diego Ice Arena, San Diego, Calif. ___________________________________________
“We converted all employees who were previously treated as exempt to hourly even though they met the Department of Labor minimum weekly salary threshold. This affected around eight management employees. Our management costs have increased as we now have to pay these employees overtime any time they exceed eight hours in a day or 40 hours in a week. It was demeaning to the employees and expensive for us. While this change was intended to benefit the employees, none of our employees are happy about this change. We will no longer be able to compensate management for going ‘above and beyond’ as they no longer ‘go the extra mile’ without authorization to work overtime. Instead, they will either go home when the clock strikes 5 p.m. regardless of the need to work extra, or we will be writing them up for excessive overtime. This is a recipe for disaster! Talk about unintended consequences!”
Scott Slavensky General Manager
Skatetown Ice Arena, Roseville, Calif. ___________________________________________
16
ISI EDGE WINTER 2016
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