Idaho employees could see big change in paycheck

The change could have big impact on people who work overtime.

BOISE -- A big change in how companies nationwide pay their employees could mean a big raise for some here in Idaho.

Some are saying it's good news for employees, but not necessarily for businesses owners. One company tells us the update to an federal overtime exemption law will have an even bigger impact on employers than the Affordable Care Act did.

Steve Cilley is the CEO of Ataraxis, which manages human resources for more than a hundred companies.

He says they're now working to make sure all those employers understand the law's update.

"It's a greater impact here, in this region, in this area than it is in other places, as with so many things, the few abusers ruined it for everyone," said Cilley.

The current law mandates that anyone making less than $23,660 must be hourly and get paid time and a half for working more than 40 hours a week. That means they could not be exempt from overtime pay.

But, the update will raise that salary level to $47,476.

So, starting December 1, if you make less than that amount, you must be an hourly employee. Cilley says the bottom line is that employers must now either switch workers in that pay bracket to hourly and pay them overtime, or raise their salary.

Debbie Kling is the CEO of the Nampa Chamber of Commerce.

"It definitely affects your bottom line because those hours that you had a little flexibility it just made life easier now is definitely more challenging to figure out how you get it all done in those 40 hours," said Kling.

She says even their nonprofit is affected and must adjust several positions.

"The greatest impact is losing the flexibility and limiting that person's hours to only 40 hours, which previously they were working 50 or 55 hours, so it's great for the employee but a little challenging for the employer," said Kling.

The Nampa Chamber of Commerce is holding a luncheon Wednesday to discuss the change and provide more information to local business owners.

You can find more information on the update to the law below:

-Employer Guide

-Questions and Answers

-Fact Sheet

 

Copyright 2016 KTVB


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