Will more employees be eligible for overtime pay

While the increase of the federal minimum wage has garnered a number of headlines this summer, hardly any news has highlighted the plight of low level salaried employees. Essentially, these employees, mostly managers and staff people for small businesses, did not benefit in the same way that hourly employees did. Because of this, some managers make less per hour than their hourly counterparts because they do not receive additional compensation for the extra hours they work.

Nevertheless, this may change soon. Earlier this summer, the U.S. Department of Labor announced a plan that would allow some salaried employees to receive overtime pay. Essentially, salaried employees who make up to $970 per week would be eligible for overtime pay. The previous threshold was $455.

Nearly five million workers are poised to be affected by this change. It is expected that retail store managers and restaurant managers are going to be affected.

Indeed, the final rulemaking process must be completed before the change takes effect, but the critical public comment period has ended; which means that any criticism that could have defeated the change has already been raised and ostensibly addressed.

For employees, it means that they may have to be reclassified in order to take advantage of the monetary benefits. Also, since there is no specific date as of yet for when the change will take effect, it remains to be seen how employers will notify employees of the change.

If you have questions about you this will affect you as an employee, an experienced lawyer can advise you. 

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