The Department of Labor recently updated regulation that completely changes who is eligible for overtime pay. This deeply affects the hourly industry, most notably managers, and you want to make sure you get all the facts so you are completely prepared to handle the changes when the new regulation is enacted.

1. New Overtime Law
What You Need To Know

2. Effective Dec. 1, 2016
The new overtime regulation
a.k.a “Final Rule”
goes into effect.

3. What it means
Any 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. 4.2 million workers across the country will be impacted.
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Source: United States Department of Labor

5. The government’s goals for “Final Rule”
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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.

6. Top factors workers consider when looking for a job
Source: Snagajob’s 2016 State of the Hourly Worker report
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Time = Money
for your workers.

7. 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 work
36+ hours each week.

8. Here’s what you can do.

9. 1. Equip your business to hire & manage more staff
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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.

10. 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 insurance
to their employees.
Most Wanted On-The-Job Perks

11. 3. Consider each worker’s impact on your bottom line
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• Increase exempt-employee salaries to $47,476
You 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 pay
If you choose to do this, you will need to track your workers’ weekly hours.
• Limit hours to 40 hours/week to avoid overtime pay
This 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.

12. 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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13. Thank you