When you need information to solve a problem — like dealing with the new Fair Labor Standards Act overtime rule — it can help to use the five Ws as a starting point to organize facts and begin to map out a solution.
We answered “Who,” “What,” “When,” “Where,” and “Why” (slightly adapted) to provide restaurants with the basic facts on the changes in the overtime rule, your options for compliance, and suggestions that can help you work smarter and control overtime.
The five Ws of the new overtime rule are:
Who: Salaried employees who earn less than $47,476 annually.
What: These workers will qualify for time-and-a-half if they work more than 40 hours per week. The previous threshold was set at a salary of $23,660 per year.
When: The rule takes effect Dec. 1, 2016, and the Department of Labor will make automatic increases to the salary threshold every three years.
Where: This applies to businesses in all industries, including hospitality, where workers with salaries that fall beneath this threshold can include chefs, head cooks, pastry chefs, and bakers.
Why Worry? You will need to decide whether to increase salaries for employees earn less than $47,476 per year, or pay overtime. Raises will probably have to occur across the board if you need to increase a new employee’s salary to the level of an experienced worker or a superior.
Another option is to keep workers at their same wages and limit overtime, which may be a challenge if your business relies on the work those employees now perform beyond 40 hours each week.
One solution is leveraging technology that can help you automate processes, add self-serve capabilities, and increase operational efficiencies to save labor hours in your restaurant’s weekly schedule.
Contact Leebro POS to learn how POS solutions give you the ability to “do more with less” and control overtime.