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Changes To Overtime On The Horizon

Changes To Overtime On The Horizon

Later this year, millions of people who are paid a salary will become eligible for overtime pay. The White House has announced that anyone who makes less than $47,476 per year will qualify for overtime pay when they put in more than 40 hours a week on the job.

The current threshold is $23,660 per year.

Many employers say that the change is too drastic. Despite this pushback, the law will go into effect on December 1 of this year. It is expected that many people who have been forced to work long hours without compensation will finally be treated fairly. In many cases, this will include people who perform managerial duties.

Those who are automatically eligible for overtime under current law has fallen to 7 percent over the last 40 decades. In 1975, the percentage of people eligible was 62. When the new law is put into effect, an estimated 35 percent of salaried workers will start seeing pay for the overtime they put in.

Not only will the new law take effect this year, but it will be recalculated every three years. The goal is for the law to effect the 40th percentile of workers bringing home a full-time salary. It is predicted that the threshold will rise to $51,000 by 2020.

It is expected that the law will have the greatest impact on the retail and restaurant industries. Some employees will receive larger paychecks by way of overtime pay, and others may see an adjustment in their salaries so that they are put over the threshold. Others still may be restricted to an 8-hour workday.

Being paid for their work can only serve to boost the morale of employees who may previously have felt taken advantage of. Studies have shown that a workforce with high morale has fewer injuries. The benefits of this law may be more far reaching than originally thought.

If you have been injured at work and need help in filing for workers’ compensation in Charleston, call our office. We are here to provide you with a free case evaluation and advise you of your options. Call now or browse our website for more information about our firm.

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