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Salaried Workers Now Guaranteed Overtime Pay


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10/14/2016
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President Obama has succeeded in propelling the movement to guarantee overtime pay to millions of U.S. workers.  The Department of Labor announced a new regulation to increase the salary amount under which workers are promised overtime pay.  Previously, workers were guaranteed overtime pay for working more than 40 hours a week if their yearly salary was less than $23,660.00 (or $455.00 per week).  Now, employers must pay overtime to employees earning less than $47,476.00 per year (or $913.00 per week).  This will positively affect anywhere from 4.2 to 12.5 million workers. The previous regulation allowed employers to exempt some employees from overtime protection by classifying their job description as "high-level," making it seem that they performed expert level work and they were allowed to get away without paying these employees overtime.  Now, the rule applies to employees regardless of job description or title, and regardless of the size of the company.  Employers can comply with the new law by paying overtime to workers who work more than 40 hours per week, raise their salaries to above the threshold amount requiring overtime pay, or prevent workers from working more than 40 hours per week.



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