Final Rule – What Does This Labor Law Mean?
The U.S. Department of Labor has announced the Final Rule, a new labor law that will take effect starting December 1, 2016. The new law is in regards to the overtime exemptions in the Fair Labor Standards Act (FLSA).
The federal law requires specific employers to provide a minimum wage and overtime to employees who qualify.
Before, if you earned less than $23,660 a year you would be provided an hourly wage instead of a salary. Now, that minimum has been roughly doubled to $47,476.
If you currently make less than 47k a year on a salary based job. Starting on December 1st you will now earn an hourly based wage with overtime. It is expected to make 4.2 million workers eligible for overtime now!
The Final Rule also increases the salary threshold of a “highly compensated employee” from $100,000 a year to $134,004. So now most white collar workers will now be eligible for overtime pay as well.
Now Until December
From now until December, employers will have to prepare for the possible changes in payroll. Accounting will need to see which employees will be exempt from this new rule and who will now be eligible for it.
Employers will have to decide between increasing an employee’s wage over the $47,476 minimum in order to continue paying them a salary based wage, or switch them to hourly and start paying their overtime.
Industries Most Likely to be Impacted
This change is expected to impact retailers, hotels, and restaurants the most. Managers of these industries, who weren’t eligible for overtime pay due to having a salary based wage, will now get paid for the extra hours they put in at work. Or, they will have more time off and be set to working a standard 40 hour week to avoid overtime. Both cases can be seen as a benefit to millions of employees who work more than 40 hours a week and are exempt from overtime pay.
Talking with your employer about what the Final Rule means to your current situation is the best way to find out how your wage will change for 2017. The main focus for this new law is to give employees the salary they worked for, or at least give them the time off they deserve.
If you are let go and feel it was unjustified or based off something personal like your race, or religion, Jeff is here 4 you! Davis Law Firm is here 24/7 to listen to your case and fight for what you deserve. We offer free consultation with our team of legal representatives, so don’t wait another day contact us today!