Employers Plan for More Overtime Eligible Employees
You may have heard that the federal Department of Labor (DOL) issued a proposed rule on July 6, 2015 that will change one of the tests for determining which employees are exempt from overtime requirements and greatly expand the number of employees who must be paid overtime for any hours worked over 40 in a workweek.
The major change is the proposal to significantly increase the minimum salary required to be paid to an employee who is an executive, administrative or professional ("white-collar") employee for them to be considered to be exempt from the overtime pay requirement. The current requirement is that these employees must be paid a guaranteed salary of at least $455 per week ($23,660 per year), while under the new rule, that salary threshold would increase to an estimated $970 per week ($50,440 per year) in 2016.
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