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Well, by now you have learned that SB3 with amendments did not pass the House. If you were concerned about having to implement a policy and process around the Act, if passed, and are now breathing a sigh of relief that you don’t have to do anything, think again. Next year is a long legislative session and expect to see one or more renditions of this in the next session. Also, to keep in mind is that the proposed legislation was voted out this year by a narrow margin of two. You may want to consider a plan for staffing should another rendition of the legislation pass next year.
And speaking of preparing…last year a proposal was made to increase the amount of pay for which an employee could be exempted from making overtime pay. Currently, employees making less than $684.00 per week may not be exempted from overtime pay if they work more than 40 hours in a week. In August of 2023, a proposed rule was released to increase the threshold to $1059 per week. If passed with no changes, anyone who makes less than $1059 per week would be eligible for overtime pay for hours worked beyond 40 hours in a work week. A final rule is expected in or after the month of April 2024. Be prepared that you may be paying higher wages whether it is due to wages for overtime pay or due to increasing hourly wages for some of your employees. You may want to run an analysis of your current compensation to see how many employees you have who are making between $684.00 and $1059.00 in a 40-hour workweek so you can determine the potential impact.
Southwestern HR Consulting (SWHRC) will continue tracking legislation at local and federal levels. SWHRC can also assist you in policy writing, compensation reviews, and with other Human Resources related items to ensure you’re in compliance with employment laws.
Written by | Magdalena Vigil-Tullar
HR Consultant | MBA, SPHR, SHRM-SCP, CLRP
Phone: 505-270-7494 | Email: magdalena@swhrc.com