Changes to the Salary Versus Hourly Rules

Earlier this year the Department of Labor released some changes to how you pay employees that you might need to consider. CliftonLarsonAllen Principle and Farm CPA Today blogger Paul Neiffer explains more about the changes
Neiffer: “Farmers who have certain types of employees such managers or let’s say a bookkeeper in the office, historically they’ve been able to pay them a salary and not have to pay any type of overtime. However, beginning December 1, if that salary is less than $921 per week or about a little bit over $47,000 a year they will have to start paying them some type of —I’m going to call it — overtime. Technically it’s not time and a half but they will have to pay the employee every hour they work as long as they qualify for ag labor. Up to December 1, if you pay them at least $455 on a salary type basis, you do not have to pay them for any hours over 40. Beginning December 1, if that salary is less than $921 per week then you have to pay them for every hour past 40 hours that they work.”
This will require you to keep track of all hours worked, including those managers and administrative workers that you do not track hours now.
The penalty for not following these rules can be harsh, so Neiffer suggests reviewing this with a good farm labor law attorney if you think the rules might apply to you.