Effective December 1st, 2016, Executive, Administrator, or Professional employees with a pay under a $47,476 ($913 weekly) threshold will be eligible to receive overtime pay.
Overtime pay thresholds will be updated regularly as well, starting in January 1st, 2020 where it will increase alongside the 40th wage percentile every 3 years.
The updates for overtime pay were announced by the White House in a move to give millions of Americans just compensation for their work.
How will the new overtime pay changes affect you?
Managers who used to earn a wage of $30,000 per year ($14 per hour) will now be eligible to receive compensation for their work due to their duties and responsibilities.
In the past, managers would work around 50-60 hours were paid only slightly more than the people they were in charge of managing.
Under the new overtime pay rules, those who were working 40+ hours will now be able to receive compensation for any work after 40 hours.
What are the overtime pay rule changes about?
If you are in the Executive, Administrator, or Professional fields under the Fair Labor Standards Act you will now be eligible to recover overtime for hours worked above the 40 hour threshold.
Affecting around 4.2 million Americans, this newly updated law will double the threshold for employees who were already potentially exempt from overtime. This in turn will open up the doors for employees to receive proper compensation for their work.
This will be the single biggest policy change in terms of impact on working people’s wages that has been seen in decades.
Will it affect all salaried employees?
The overtime law will mostly affect managers and others in the Executive, Administrator, or Professional exemptions who will now be eligible for compensation for working more than 40 hours in a week.
The interactive graphic below gives a visual comparison of the amount of employees who will be affected by these new rule updates.
Employers will be forced to stop taking advantage of their employees and properly pay their employees by raising wages or paying overtime that would otherwise be unpaid.
What if I already have a salary above $47,476?
Just because you earn more than $47,476 a year does not mean you are excluded from overtime pay.
Overtime laws are different in a variety of industries, and many employees could already be eligible to receive overtime.
This means that even if you are not in the Executive, Administrative, or Professional fields you may still be entitled for overtime, regardless if you earn more than $47,476 or not.
Will I have to wait until the new laws take place to ask for overtime?
While the new laws will not be effective until December, you may already qualify for overtime, regardless of your current or future salary. Workers in the oil and gas industry, sales, or even day rate workers are all potentially eligible for overtime compensation.
These overtime law updates will help close the gap and force employers to increase pay or face overtime without taking advantage of employees.