Finally, the long-awaited changes to the federal overtime regulations have been announced, with the federal definition for overtime being hours worked over 40 hours per workweek.
- Now salaried employees who receive less than $47,476 annually will be entitled to overtime pay in most cases, where previously employees who received a salary of less than $23,660 annually were entitled to overtime.
- Highly compensated workers who previously were not entitled to overtime because they earned more than $100,000 annually may now be entitled to overtime pay if these salaried workers receive less than $134,004 annually.
- An employer may now include non-discretionary bonuses or other compensation, like commissions, as part of the salary computation, as long as they do not exceed more than $4,747.60 (or 10% of $47,476) per year.
- The new rule also provides that the salary levels may be increased every three years based on the state of the economy.
- According to the U.S. Department of Labor, the new rule will impact more than $4.2 million employees and how they are paid!
- More salaried employees will be entitled to overtime pay!
- Other salaried employees may get a raise!
If you have questions about how these new changes may impact you, consult an experienced employment attorney.