The Department of Labor issued their final ruling on Overtime on May 18th, 2016 to automatically increase the overtime pay of over 4 million workers.
Key Provisions of the Final Rule
- Set the standard salary level at $47,476 annually for a full year of work, make less than this and you get paid overtime.
- Set the total annual compensation required for highly compensated employees to a minimum of $134,004 in salary.
- Set up a way for these annual salary and compensation levels to be updated every 3 years..
- And allows employers to use bonuses and incentive payments to satisfy up to 10% of the new standard.
So if you are an overworked salaried person, you may be expecting a raise later this year. Or then again you may be looking at looking your job or getting demoted to an hourly worker with out all the benefits you may have currently.
- How Will New Overtime Rules Affect You – Fox
- Will Obama’s New Overtime Rules Hurt Workers – CNN
- Three Ways Obama’s New Overtime Rule Hurts the Economy and Workers – The Fiscal Times