https://vimeo.com/182013370
Karen: This is the PKF Texas Entrepreneur’s Playbook and I’m Karen Love; I’m the Host and Founder. I‘m here again with Wilka Toppins and she’s the Founder and Principle Lawyer at Toppins Law Firm. Welcome back to the Playbook Wilka, I’m so glad you’re here.
Wilka: I’m glad to be back.
Karen: Thank you. We talked about the rules, the change in the overtime laws and what I would like to know is how an employer would know if they’re a part of this through an example if you will; a case scenario.
Wilka: Right Karen; traditionally we would look at duties of an employee to classify them as overtime eligible or overtime exempt.
Karen: Right.
Wilka: The big, big change is now it’s going to be salary-based. So if you’re making more than $47,000.00 then you’re not going to be paid overtime; you’re not eligible and as an employer you don’t have to pay it. But if you’re making less than $47,000.00 and your duties are such that even then you are a manager you are going to be eligible for overtime. So let me give you an example.
Karen: Please.
Wilka: Let’s say you have a company, an employer that has a manager making $40,000.00 – it’s a small company, they make $40,000.00 – this manager had a salary and he was working routinely 50 hours, 45 hours because he’s a manager, now under the new rule which is effective December 1st of this year, that manager is eligible for overtime.
Karen: Okay, that is a big deal.
Wilka: It is.
Karen: It’s a big deal so I’m going to invite you back to talk about other scenarios, what this means to employees and employers and anything else that we need to share with our marketplace so we can be trusted advisors.
Wilka: Great, thank you.
Karen: Would you do that?
Wilka: I will.
Karen: Thank you very much. This had been another Thought Leader Production brought to you by the PKF Texas Entrepreneur’s Playbook. Tune in again.