New rules for overtime pay and non-compete agreements could have a huge impact on small business owners. 

Recently, the Federal Trade Commission released new rules for employers nationwide. The regulations include new restrictions on non-compete agreements and new rules detailing who is eligible for compensated overtime. 

Courtney Kincaid, President and CEO of the Indiana CPA Society, says the new regulations will have “Big implications on employers.” Kincaid says the new rules are designed to keep the workforce “competitive and innovative.” 

One possible result of the new restrictions on non-compete agreements is a rise in employees leaving their current jobs and starting small businesses with the knowledge they have gained from previous employers.  

When it comes to new regulations on non-compete agreements, Kincaid says employers have to make sure they take steps to protect their intellectual property from any employees who are leaving their company. Along with having employees sign a non-disclosure agreement, Kincaid also recommends hiring an attorney and a CPA to help with these transitions.

While the most immediate impact of these new regulations will be higher salary costs for employers, Kincaid encourages small business owners to consider other benefits they can enhance to retain workers who may consider leaving.   

Kincaid also wants employers to pay attention to new overtime pay rules. The new regulation is the largest threshold increase in decades, and it will expand the overtime pay threshold to include salaried employees making up to $43,000/year.  

While this new rule can be a burden for employers, Kincaid reminds small business owners to be aware and to make sure all employees are properly classified. She says the threshold will continue to increase in the next few years to match the rise in inflation.