Millions of additional Americans are eligible for overtime pay under a new rule released by the Labor Department. The rule proposed by DOL last summer would have raised the threshold to $50,440. However, the final version lowers the proposed threshold to $47,476.
Breaking News: $47,476 is the New Overtime Threshold! 5 Million Employees Affected!
Millions of additional Americans are eligible for overtime pay under a new rule released by the Labor Department.
Currently, salaried employees earning more than $23,660 a year are exempt from receiving overtime pay when they work more than 40 hours a week. The rule proposed by DOL last summer would have raised the threshold to $50,440. However, the final version lowers the proposed threshold to $47,476.
About five million salaried workers are expected to be newly eligible for overtime. The rule, which will take effect December 1, 2016, includes a mechanism to raise the threshold periodically.
Many organizations will convert salaried workers to hourly and ask them to clock in and out to track their hours, according to the National Federation of Independent Business. Even those who remain on salaries will have to be monitored and receive paid time and a half for logging more than 40 hours a week.
Businesses are expected to take measures to minimize the additional costs. It is estimated that roughly 1.2 million Americans will actually receive increased wages through overtime or a higher base salary.
Join us for a webinar on the new DOL regulations and how to minimize overtime.
AGENCIES: Thursday, May 26th, 2:00 pm EDT REGISTER HERE
CONTRACTORS: Wednesday, June 1st, 2:00 pm EDT REGISTER HERE