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15 Feb ’12
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wonder if this will have the same impact as the 30 hour threshold for health care
CNNMoney — Starting later this year, millions more workers will become eligible for overtime pay.
Under a new rule announced by the White House Tuesday, anybody making a salary of less than $47,476 ($913 a week) will automatically qualify for overtime pay when they work more than 40 hours a week.
That’s roughly double the $23,660 threshold (or $455 a week) that’s currently in place.
The change — which has been criticized as too drastic by many employers — will go into effect on Dec. 1, 2016. They are intended to expand access to overtime pay for otherwise low-salaried workers who log long hours but have been treated as exempt from overtime because they perform some managerial duties.
Vice President Joe Biden characterized the changes as “restoring and expanding access to the middle class.”
The percent of salaried workers automatically eligible for overtime has fallen to 7% from 62% in 1975. Under the new threshold, 35% of salaried workers will become automatically eligible, according to Labor Secretary Thomas Perez.
The new threshold will be updated every three years to make sure it stays at the 40th percentile of full-time salaries in the lowest income region of the country. Based on wage growth projections, that means it could rise to $51,000 by 2020.
In figuring out whether salaried workers’ income qualifies them for overtime, employers will be allowed to count their bonuses and commissions up to 10% of the threshold. So, for instance, if someone makes $44,000 today and gets a $4,000 bonus, his total income ($48,000) will mean that he will remain exempt from overtime.
The Labor Department estimates the rule change could result in an additional $12 billion in pay for workers over the next decade.
18 May ’16
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Interesting. And I know I'm still new here. So my opinion might not be the most popular. But I don't see any more regulation in the job market as a good thing. I believe that if you take a job and you do not like the pay then you should seek employment elsewhere with a company that Will offer compensation that you like.
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jonathco, DangerDuke15 Feb ’12
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Agree 100 percent
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CJ, DangerDuke
19 Feb ’12
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I also agree with CJ. Now in the past, when I worked at Terminix, I recieved "salary in advance of commission". And then they would take total pay and divide by total hours, and then if below minimum wage, they would pay overtime.
18 May ’16
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It's that way with a lot of professions tapper. When I first moved out and was going to school I took a job doing direct sales for a contractor. They did the same thing. But failed to pay on most of our comissions. After a while they couldn't find anyone to work for them and eventually went out of business.
8 May ’16
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I was once in a position as a manager of Jersey Mikes a decent sandwich shop I was 19 years old and worked 6 days a week as the only employee without the ability to hire. The owners would work occasional to help me out but I was on Salary. I made 550 dollars a week before taxes. after about 5 months I quit, It was far to much work with far to little pay and the term manager meant nothing to me without employees.
I agree 100% if you dont like the job quit and find another, but at the same time there are many employers who will take advantage of salary workers, knowing they can work them to death and still pay them the same wage. I worked for DFAS for a while and as a Salary Technician there if we worked over 40 hours, Lets say 45 hours. Then you earned 5 hours off work for the following week. I used all of my accumulated hours over the year instead of my vacation time and then cashed in my vacation time each year as a bonus for my self.
I think finding the right employer is key and this is in my opinion something thats a State issue like minimum wage, not a federal issue.
18 May ’16
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I understand and agree that some employees are taken advantage of. But I don't believe for a second that the answer to that problem is more government. Either at the state or federal level.
How long ago were you working at Jersey Mike's? 550 a week is pretty good money for a 19 year old even today.
8 May ’16
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2005 and that was before taxes. for the hours I put forth it was no where near worth it lol before that I had managed a pizza shop that I had worked at since I was 15.
And I dont believe more control is needed at all, but I think if things like this come up it should be a state issue not a federal. A guy i worked with once in a machine shop told me he used to work in California (I think....) and Overtime was paid every day if they worked over 8 hours. I thought that was interesting compared to the 40 first rule we have here.
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