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John, Employment Lawyer
Category: Employment Law
Satisfied Customers: 4470
Experience:  Exclusively practice labor and employment law.
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I have an employee that works on salary ( salary 40K year).

Customer Question

I have an employee that works on salary ( salary 40K year). Is the law changing that all employees must become hourly employees in December 2016 or January 2017.
Submitted: 2 months ago.
Category: Employment Law
Expert:  John replied 2 months ago.

It is changing December 2016. You will either need to pay him $47,476 per year or more in salary or change him to hourly (in which case you'll be on the hook for overtime for hours over 40 per workweek). One caveat I'd also warn you of is that this is a federal law only that is changing, and that law only applies to employers that are either doing business across state lines or grossing $500,000 in sales per year. With 10 employees I imagine you are doing that, but you should know that.

Expert:  John replied 2 months ago.

I believe this answers your question. However, if you need clarification or have follow-up questions regarding this matter, I will be happy to continue our conversation – simply reply to this answer. If you are otherwise satisfied with my response, please leave a positive rating as itis the only way I am able to get credit for my answers. Thank you, ***** ***** wish you all the best with this matter.

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