INDIANAPOLIS, Ind. - Nearly 250,000 workers here in Indiana could benefit from changes to the Fair Labor Standards Act. Some say it will hurt small business, others call it a win for workers.
“The lawmakers would say, you've had time, we have been telling you all along, but you know it was almost too hard to believe it would happen this quickly,” said Julie Bingham, a compensation advisor with First Person in Indianapolis.
Now, many businesses and organizations are scrambling to figure out how these changes to the Fair Labor Standards Act will affect their business and their employees.
“The population that’s most effected are individual employees who are currently paid on a salary basis and are not getting paid for overtime. If they make less than the new threshold,” said Bingham.
That new threshold has now more than doubled to nearly $47,500.
“There’s only so much available to (Businesses) them. They’re either gonna have to cut people, cut hours or potentially even add part-time temporary workers to help make the difference,” said Barbara Underwood from the National Federation of Independent Businesses.
Experts say, even if you are being paid overtime for working more than 40 hours a week you could still be affected.
Paid time off, bonuses and incentive plans, could be done away with if your employer looks to compensate for the changes.
The impact, though, could help an estimated 12 and a half million workers earn a higher income.
Grant Monahan with Indiana Retail Council calls the change a “career killer in retailing.”
“It’s gonna have that negative impact for individuals who were looking forward for the opportunity to grow with the company and to seek greater opportunities within that company,” Said Monahan.
Bingham says time will tell how each business or organization is affected.
“It’s not just about the financial impact, but the emotional impact and how that’s communicated by the employers so that the employees really understand where they fit in the whole puzzle,” concluded Bingham.
The new law is scheduled to take effect on December 1st.
The salary threshold will be updated every 3 years.
Based on projections, it is expected to rise to $51,000 by January 1st, 2020, when the first update takes place.