New overtime rule to affect East Texas business owners - | Lufkin and Nacogdoches, Texas

New overtime rule to affect East Texas business owners

Source: KTRE Staff Source: KTRE Staff
Source: KTRE Staff Source: KTRE Staff
Source:KTRE Staff Source:KTRE Staff

The Lufkin and Angelina County City of Commerce is holding an information session for local businesses Thursday morning regarding the new overtime rule that will go into effect this fall.

The United States Department of Labor just recently announced their final ruling in regards to changes to the overtime threshold for the Fair Labor Standards Act.

This new rule outlines an increase to full-time white collar salary employees. The new rule will increase the exemption threshold from $23,600 dollars to $47,475.

Angelina and Lufkin Chamber of Commerce President Jim Johnson said it’s important for local businesses to be prepared for these changes.  

“We’ve talked to some businesses, and I think it’s going to be difficult for some; they’re going to have to look at how they track their employees' hours, and for some people who haven’t had to do that, it’s going to be a difficult change for their company.” Johnson said.

The Chamber of Commerce will be hosting an information session Thursday morning for local business owners and employers in order for them to be better prepared for this new threshold rule and how it could possibly affect their businesses.

“We’re going to hope that we can review this and say that you need to switch them to an hourly rate and now be required to pay them overtime according to the Department of Labor or you have to raise their salary up to forty-seven-thousand-plus dollars to not have to pay them an overtime rate. “ Johnson said.

With this new change the Lufkin and Angelina County City of Commerce is hoping to bring as much information as possible to local businesses during tomorrow’s session.

“The chamber has a responsibility to advocate for good business practices here in our county, and we realize that people weren’t informed on this, and we want to make sure that our businesses are educated, so that there is no job loss, there is no confusion as of December first, and there’s no penalties for our businesses.”  Johnson said.

The new rule is set to go into affect on December 1st twenty sixteen for all business across the United States.

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