The White House announced on May 18 that it will essentially double the threshold at which salaried employees performing certain executive, professional or administrative duties are exempt from overtime pay. The current threshold is $23,660 and will roughly double to $47,476.
Labor Secretary Thomas Perez told reporters the exemption was originally intended for high-paid executives, but instead has denied overtime to low-level retail supervisors and entry-level office workers who often toil 50 to 70 hours a week.
Officials said that the threshold has been seldom adjusted. In 1975, 62 percent of full-time workers qualified for overtime, but only 7 percent do today. Employers, however, have raised concerns that the rule would require them to track hours for certain employees they currently don’t. It could also force them to either pay employees more, or send them home after 40 hours and hire part-time help to help get tasks completed.
The change is scheduled to take effect December 1. The threshold then will be adjusted every three years. OAN’s legal firm of record, Jordan Ramis PC, is analyzing the effects of the new overtime rule and will be providing advice for members in the near future.
