Monday, August 31, 2015

Overtime Pay Rules Changes

The Obama administration has proposed dramatic rules changes under the Fair Labor Standards Act for determining which employees must be paid time and a half for working more than 40 hours per week. Current rules exempt white collar salaried workers earning more than $35,000.00 per year from overtime requirements. The proposed new rule would require time and a half pay past 40 hours per week to white collar workers earning between $35,000.00 and $50,440.00 per year.

Businesses responding to the proposal say it will not result in higher earnings for current employees, rather it would cause hiring of part time workers without benefits to perform the extra hours of work, eliminating overtime for current staff. It remains to be seen what the final rule will look like after the comment period expires.

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