TL;DR
A U.S. District Judge in Texas blocked the new overtime regulation suggested by President Obama in 2014, which would have increased the salary exemption to $47,476. Restaurant operators are advised to continue tracking and paying overtime as usual until further guidance is provided.
Back in 2014, President Obama suggested overtime regulations needed to be updated by the Department of Labor. On December 1st, that suggestion was meant to come to fruition by increasing the salary exemption to $47,476.
According to QSR, the annual salary of the average restaurant supervisor today is $32,140. This means that if the law passes, pretty much all restaurant and foodservice employees will be eligible for overtime.
However, a U.S. District Judge in Texas block the new overtime regulation last week, before the law could go into place. While no one knows just yet how the regulations will play out, QSR suggests preparing in these ways:
Continue to track, monitor, and pay overtime as you were previously. You don’t yet have to make any changes.
If you have already made changes, it’s been recommended by experts that you stick to them.
Implement smart timesheets
Be diligent about having employees clock in at the right time.
Stay on top of labor expenses
In this story
This story was originally published in 1851 Franchise on December 1, 2016. Burnaze summarizes and links to the original reporting.
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