02 November, 2016

Why A New Law May Entitle You To A Pay Raise December 1, 2016

Effective December 1 of this year, the overtime salary threshold doubles from $23,660 to $47,476.

What does this mean to you? If you are an employer, it means that you may have to start tracking the time of salaried workers whose time you don’t currently track and it means that you will now have to decide whether to increase some employees’ salaries or pay them overtime when they work more than 40 hours per week. Effective December 1, employers will no longer be able to avoid paying overtime by simply giving employees “titles” like “assistant manager” then putting them on salary at around $24,000 and requiring them to work 60 or 70 hours per week. Starting December 1, American workers who work more than 40 hours per week will be entitled to get a salary increase to $47,476 or get overtime pay for any hours they work beyond 40 hours per week. 

If you are one of those salaried workers who works more than 40 hours per week but doesn’t make at least $47,476 your employer will now have to track your hours. 

For more information on the new overtime salary threshold, visit the Department of Labor website at DOL.gov.

Joseph Higginbotham has written hundreds of articles and columns for dozens of magazines, journals and newspapers and has appeared as a guest on such talk radio shows as Tri-State Talk with Mayor Bobby Nelson, The Mike Queen Show, The Jack Pattie Show, The Sue Wiley Show, The Eddie Cooper Show, The Tom Roten Morning Show and others.
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