Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business News

Overtime laws could soon be getting an update

(BUSINESS NEWS) There are some potential changes coming to overtime laws – employers must know how to be complaint, and employees need to make sure they’re getting paid fairly.

overtime laws changing

An important new overtime rule is being proposed that could change overtime for the better. With unemployment at an all-time low, this change could affect at least one million workers.

Overtime is determined by the Fair Labor Standards Act (FLSA). If an employer allows for overtime work, then overtime pay must be paid to employees. Overtime pay is typically one and a half times the hourly rate. Overtime is considered traditionally as any time worked over 40 hours in a work week. Employees are classified as either exempt (also called salaried, meaning no overtime eligibility) or unexempt (allowing for overtime).

This is determined by whether you earn a salary or wage at or above a certain threshold. Currently, the exempt threshold is $23,660 annually. If you make below that amount, you are eligible for and required to be paid overtime if it is worked. Many employers restrict positions from working overtime in order to avoid paying it so this new law won’t change much for them. For more specific details about the rules, see this cheatsheet.

The overtime rule proposal, which has been published and taking comments since 2016, would increase the overtime threshold to $35,308 per year. This would make as many as 1 million more workers potentially eligible for overtime under the law. The overtime law is an important one to protect worker’s rights and prevent abusive work practices by employers. The last change was made in 2004. Another proposed change is for periodic reviews of the overtime law. It’s important to note there is no change for firefights, police, paramedics, and nurses as well as some other unionized workers like carpenters and electricians.

Advertisement. Scroll to continue reading.

The classification of ‘highly compensated’ employees would change from $100,000 to $147,414.

The new rule, if it becomes law, will require more employees to be paid overtime. This is especially important for those employees who are required to work on holidays. Currently, law makers are working to finalize the rule for approval.

An official publication has been made in the Federal Register and closes for public comments on May 21, 2019. Submit your comment before the deadline is up.

Advertisement. Scroll to continue reading.
Written By

Charity Kountz is an award-winning fiction and nonfiction author as well as a Realtor and certified Paralegal. Her writing has been featured in Coldwell Banker, iPhone Life, Strategy magazine, Duck Soup magazine, and more.

2 Comments

2 Comments

  1. Pingback: Additional time rules may just quickly be getting an replace - TRENDING HITS

  2. Pingback: Overtime pay laws are changing, are you ready for them?

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Economic News

Trade schools are booming as career outlook grows. College enrollment is down. The workforce is changing. How can small business keep up?

Business News

Hunting for a job can come with infinite pressures and rejection, sometimes you just want it to be over - here's how to avoid...

Business Entrepreneur

Finding unicorn employees are every hiring manager’s dream, but what should you look for to find them? We have the answer!

Opinion Editorials

(EDITORIAL) Global Pandemic or not, people struggle to search for job opportunities, their careers, and to find their passion.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.