A recent proposal from the U.S. Department of Labor, which recommends raising the annual salary-level threshold on the overtime paid to white-collar workers, has many employers thinking about how the final ruling could impact their business in 2016, reports InsideCounsel magazine.

Buchanan Ingersoll & Rooney Labor & Employment Shareholder Michael J. Hanlon told the publication the proposed changes could especially impact retail and food service sectors.

With the new proposal, the article reports that the threshold may be raised from $23,660 to $50,440, leaving many general counsel and employers needing to rethink their classification of employee positions.

“Are there any ways to work around the rules? There are questions whether some jobs can be done by employees or will they be done by those who work as independent contractors,” Hanlon told the publication. He said that the new proposal could also result in more use of franchising.

“People may want to look harder at these arrangements as a way to control costs,” he said. “Other options now start looking potentially more attractive.” 

Read the full article – “White-collar Overtime Proposal Creates Challenges for Many Businesses” (InsideCounsel, July 6, 2015)