New Overtime LawWhat You Need To Know

Effective Dec. 1, 2016The new overtime regulation

a.k.a “Final Rule” goes into effect.

What it meansAny worker that earns less than $47,476/year ($913/week) will be eligible for time-and-a-half pay when they put in more than 40 hours a week.

We anticipate that employers will start to hire more people with less hours to offset the potential increase in costs. For workers, we anticipate that we will see them further embrace the shared/gig economy by trying to snag more jobs and shifts in order to meet their desired weekly earnings.

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4.2 million workers across the country will be impacted.4

Source: United States Department of Labor

The government’s goals for “Final Rule”5

ONE

Put more money into the pockets of middle-class workers - or give them

more free time.

TWO

Prevent the erosion of future overtime

protections and ensure greater predictability.

THREE

Increase employment, work-life balance & employee health by

spreading the workload.

Top factors workers consider when looking for a job

Source: Snagajob’s 2016 State of the Hourly Worker report

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Time = Moneyfor your workers.

Desired work hours each week

Source: Snagajob’s 2016 State of the Hourly Worker report

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Over half of workers want to work36+ hours each week.

Here’s what you can do.

1. Equip your business to hire & manage more staff9

On average, managers spend about 25% of their time scheduling workers and dealing with related issues. And 35% of Millennials quit because of inconsistent scheduling. Prioritize your time, increase employee retention and prepare for a larger team with a robust scheduling tool.

Snagashift is 100% digital and mobile, so you can access what you need on your computer, tablet or phone. Workers can trade shifts and submit time off requests, you can approve changes and create schedules. Easy scheduling, time savings and improved communication at your fingertips.

2. Offer unique benefits

Source: Snagajob’s 2016 State of the Hourly Worker report

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If you can’t afford to offer higher wages to your workers, look to provide

creative perks.

We’re seeing a trend of big name brands doing this. Starbucks rolled out a flexible

uniform policy, Chipotle recently expanded their tuition reimbursement program and

Cava Grill even offers pet insuranceto their employees.

Most Wanted On-The-Job Perks

3. Consider each worker’s impact on your bottom line11

• Increase exempt-employee salaries to $47,476You can increase employees’ salaries to the new $47,476 exempt threshold to avoid overtime pay. This could mean a significant labor cost increase for small businesses.

• Maintain current salaries and track/provide overtime payIf you choose to do this, you will need to track your workers’ weekly hours.

• Limit hours to 40 hours/week to avoid overtime payThis is what we will most likely start to see - employers hiring additional workers to cover all hour/shifts, but keeping individual shifts down.

According to our latest survey, 37% of employers do not plan on making any business changes; 28% plan to give employees a small raise so they no longer qualify for the overtime pay threshold; 22% plan to decrease employees’ hours to no more than 40 a week to avoid overtime pay; and 13% plan to decrease employees’ base salaries to offset any overtime pay they could potentially make.

Resources● On-demand webinar: Overtime Work Regulation● New Overtime Rules -- What They Mean for Your Small Business● Employee Scheduling Tools● 2016 Election Infographic: How Employers Plan to Act

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Thank you