With 2017 just around the corner, it is time for employers in 19 different states to begin preparing for the increase in their state minimum wage that will go into effect on January 1, 2017. Each of these states has passed legislation that will increase their state minimum wage to be higher than the federal minimum wage.
Earlier this year, the Department of Labor announced it will be raising the salary threshold for overtime exempt employees. Under the new ruling, employees must earn a minimum of $47,476 per year or $913 a week. This is a significant jump from the previous threshold of $23,660 per year or $455 per week.
You will soon see big changes to who in your company qualifies for overtime exemption. The Department of Labor is updating the Fair Labor Standards Act that will drastically change the overtime rules for salaried employees.
With the “full time equivalent workers” provision of the Affordable Care Act (ACA) comes new enforcement initiatives for workers classified as independent contractors. The IRS and Department of Labor have made the issue of misclassification a priority item, with this new legislation additional resources have been provided to agencies for enforcement.