Working overtime rarely correlates to more productivity. Here’s a breakdown of the most recent data – and tips for achieving a proper work-life balance.
- Research has consistently found that countries, where working overtime is common, don’t necessarily achieve higher productivity rates per employee per hour.
- According to 2021 reports, the U.S. ranks 11th in terms of productivity per employee per hour.
- A healthy work-life balance can enhance productivity, and many household-name companies and smaller businesses offer creative work schedules.
- This article is for business owners and managers interested in boosting productivity without mandating overtime.
On May 18, the U.S. Department of Labor (DOL) announced final updates to the Fair Labor Standards Act’s “white collar” overtime exemptions.
The new overtime rules (known as the “final rule”) increase the salary threshold needed to qualify for overtime exemption from $455 per week ($23,660 per year) to $913 per week ($47,476 per year.) and affect 4.2 million workers.
Also, the total annual compensation requirement needed to meet the highly compensated employee (HCE) exemption will increase from $100,000 per year to $134,004.
Any business that employs workers with salaries under the new threshold will need to consider their best course of action or face paying thousands in higher wages. They could also be subject to employee lawsuits for failure to comply with the rule. No business is exempt, regardless of size.