Is your business prepared to undertake new overtime rules that will be set into place on December 1, 2016? If you are fined because of non-compliance, your business insurance will not provide coverage. Business insurance policies are not designed to cover government fines.
The US Department of Labor (DOL) released the final rule that raises the white-collar overtime exemption threshold under the Fair Labor Standards Act (FLSA). The new regulations take effect on Dec. 1, 2016. Your business will need to start tracking hours for exempt salaried employees who make under $47,476.
Businesses that will be most affected will be those in the hospitality industry, nonprofits, retail, manufacturing and any agribusiness.
Options for employers
- Pay these employees time and a half for overtime.
- Increase workers’ compensation above the minimum.
- Limit work hours to 40 per week.
Here is a link to the Department of Labor’s web page. Click here
Enhance Your Policy With Some of These Options:
- Employment Practices Liability can cover your business if discrimination, sexual harassment or wrongful termination claims are made by present, former or future employees.
- Life Insurance for Business Owners can help you plan for business succession, survive the loss of a key employee or partner and retain/reward your top people.
- Umbrella can shield your business from potentially ruinous lawsuits with additional liability coverage.
- Transportation and Cargo to cover against goods that are damaged or lost when transported by one of your vehicles or common contract carriers.
- Spoilage for perishable goods when they spoil due to a mechanical breakdown or power outage.
- Delivery/Catering Non-Owned Auto if an employee is involved in an auto accident while driving a personal automobile on company business, such as in a delivery or catering service.