Friday, July 3, 2015

Overtime Pay for More Workers

The Huffington Post reports the Obama Administration is making good on its promise to bring more employees under the protections of the Fair Labor Standards Act: 

On Monday, the White House unveiled a major reform that should guarantee overtime coverage for salaried workers earning less than $50,440 per year. If the proposal goes into effect in 2016 as planned, an estimated 5 million new workers will be eligible for time-and-a-half pay, the standard overtime rate in the U.S., whenever they work more than 40 hours a week.

Under current law, professional, executive or administrative employees are exempt from overtime law as long as they earn $455 per week. That comes out to $23,660 per year. If the White House’s proposal becomes law then such employees making less than $970 per week, or $50,440 per year, will be entitled to receive overtime pay.