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How The New Overtime Law Will Impact Small Business (4 links)


NOTE: We are trying a new experiment with this post. Instead of just providing one link to a post or article you should check out, we’ve provided links to multiple articles on the same subject so you can get various viewpoints.


overtime law


Did you know?


On March 13, 2014, President Obama signed a Presidential Memorandum directing the Department of Labor to update the regulations defining which white collar workers are eligible to receive pay for hours worked over 40 in a workweek.


How will that impact your small business? Check out the links to the articles below to read some different perspectives…


Overtime Wage and Hour Division (from the  Department of Labor)


The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. The Act does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime is worked on such days.


The Act applies on a workweek basis… Click here to read more.


Obama’s Overtime Law Could Mean No More Employees for Startups (from


Recently President Obama signed an order directing the Labor Department to revise the rules relating to overtime pay for executive, administrative and professional employees.  As it currently stands, salaried employees in these classifications who make below $455 per week are automatically eligible for overtime pay. The rule changes, once in effect, would increase this threshold and possibly change other factors relating to overtime.


This is but the latest example of governmental meddling with the employer-employee relationship… Click here to read more.


Jump Starting Real Wage Growth for Women: Increasing the Minimum Wage and Improving Overtime Laws (from HuffingtonPost)


In the context of a lost decade of wage growth for women, two recent proposals — to increase the federal minimum wage to $10.10 per hour (including increasing the separate minimum wage for tipped workers), and to increase the threshold salary forovertime pay to $50,000 annually — can provide much needed relief to women.


Increasing the minimum wage requires that the U.S. Congress pass a law. The current minimum wage of $7.25 was set in 2007 and went into effect in 2009, but President Obama has already acted by executive order to require firms that hold contracts with the federal government to pay their workers a minimum of $10.10 per hour. In contrast, increasing the salary threshold for receiving overtime pay, does not require congressional action, but does require action by the Secretary of Labor… Click here to read more.


How the New Overtime Law Changes Will Affect Small Businesses (from


President Obama recently signed an executive order calling for new rules on overtime pay. Currently, salaried workers in executive, administrative and professional positions aren’t eligible for overtime pay if they make over $455 per week. The President suggested $600 or $640 as the new threshold – the current standards for New York and California.


Let’s put this in layman’s terms. There are many arguments for this new overtime law change. According to the White House, only 12% of salaried workers are currently legally required to receive overtime pay, and the threshold hasn’t been raised since the mid-1970′s. Additionally, following the economic downturn, company profits have bounced back, with profits of S&P 500 companies doubling since 2009. However, wages haven’t followed suit… Click here to read more.


Comment below and let me know what you think of this new experimental post!


Photo by ~Pawsitive~Candie_N


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About Scott Aughtmon (1872 Articles)
I’m author of the book 51 Content Marketing Hacks. I am also a regular contributor to and I am the person behind the popular infographic 21 Types of Content We Crave. I’m a business strategist, consultant, content creation specialist, and speaker. I’ve been studying effective marketing and business methods (both online and offline) since 1999. ===> If you would like to see ways that we could work together, then please click here to learn more.