Dec 12, 2016
Recently President Obama announced a major change in labor laws by introducing a proposal to update rules that would extend overtime pay to almost 5 million workers. Below are a few important points that are part of this proposal:
- The threshold for salaried employees who are guaranteed overtime is proposed to increase from $455/week or $23,660/year to $970/week or $50,440 per year beginning in 2016. This new proposal guarantees overtime to equal the 40th percentile of weekly earnings for full-time salaried employees.
- Minimum wage and overtime pay will be extended to almost 5 million workers within the first year of the proposal.
- Millions or workers and employers will be provided more clear definitions of who should actually be receiving overtime pay.
- Salary threshold for overtime pay will be adjusted automatically for inflation or wage growth over time.
By: Kristin Metzger, CPA