As a rule, if you are payed on an hourly basis, you are already entitled to overtime pay no matter what your salary is.
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The new overtime rule the Obama administration issued Wednesday could mean thicker paychecks for some Americans who work longer hours unless it just means reduced time on the job.
The White House announced a new rule that will boost the number of Americans who qualify for time-and-a-half pay whenever they work more than 40 hours in a given week.
However, he added, “Now, the counter to that is that the Department of Labor believes that that will cause employers to identify that overtime, cap the overtime, for which the employee’s not being paid anything more, and then push that work to additional employees”.
Labor Department officials estimated the new overtime rule will help a total of 4.2 million salaried, non-manufacturing workers nationwide, including 146,000 in California who are not now protected by the state overtime threshold. The higher threshold is meant to offset inflation, which has eroded the threshold. “They’re either going to get more money … more time with their family, or everybody is going to get clarity”.
Expect many workers to get a nice raise. Many employees may see their pay raised to be slightly above the new exemption threshold. That would make 4.2 million more salaried workers eligible for overtime pay.
David French is with the National Retail Federation.
Administration officials disagree that pay cuts will be so widespread. Hourly workers would continue to be mostly guaranteed overtime. “Instead, they’re going to make the rational change and they’re going to change jobs”. “It’s irrational to lower the salary of your most trusted employees”. But it will also affect all private sector industries, as well as government offices and nonprofits, from social service organizations to universities. Which is a big win for middle class workers says attorney Bruce A. Miller. Under the new threshold, 35% of salaried workers will become automatically eligible, according to Labor Secretary Thomas Perez.
“Who is hurt the most?”
ABC27 News got mixed reaction from people in Harrisburg.
Q. What will the economic impact likely be?
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“So what this does is, now this business is forced to pay more, potentially, to employees for overtime so they’re going to have to make cutbacks in other areas”, Miller said.
