New Year, New Overtime Pay Rules, Minimum Wage Increase
Starting a few days ago, new overtime pay rules went into effect.
On January 1, a new federal Labor Department rule requires employers to pay workers one-and-a-half times their hourly rate when they work more than 40 hours per week for those earning less than $35,568 per year. This is an increase from the previous threshold of $23,660.
Employers can apply contractual bonuses and commission payments to as much as 10 percent of the exempt threshold.
You can find more information about the change on the U.S. Department of Labor website.
Also, as of the first of the year, the Colorado state minimum wage increased. You can find more information from the Employers Council.
Finally, the Chamber’s 2020 Lunch n’ Learn series kicks off next week with a presentation on “Business Account Plans, Contract Labor & Individual Tax Changes”. In this presentation, Mona F. Frayer, CPA, MBA will advise on accountable business reimbursement plans, contracted labor for U.S. employees, and business forms. Click here for more information and to register.