According to the Economic Policy Institute, only 11% of American workers qualified for overtime pay in 2013. With the help of President Obama’s 2014 directive, the U.S. Department of Labor plans to enact a rule that will increase that statistic and induct millions of employees into the overtime system.
The new rule is in the editing stage at the Department of Labor and is expected to be complete by late September. It will include information concerning which employees will qualify for overtime pay. Currently, under the establishments of the Fair Labor Standard Act, salaried workers who earn below $455 per week, or $23,660 per year, are automatically eligible for overtime pay, regardless of occupation. However, salaried workers who earn $455 per week or more can be exempted from the right to receive overtime if they are classified as a professional, administrator, or executive. Once enacted, the new rule would guarantee overtime pay for over four million Americans by raising the minimum salary threshold to $50,440.
As the American workplace begins to make rapid changes, employers are encouraged to review their current time-keeping procedures as well as their communications policies. The U.S. Department of Labor urges employers to research updated workplace protocol to ensure a smooth transition in the months to come.
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**The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. The information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship