The Obama administration’s new overtime rule could mean extra bucks for those extra hours at work – but only if your boss follows the rules. And historically, that doesn’t always happen.
“There’s a huge problem with compliance,” said D. Michael Hancock, former assistant administrator for the U.S. Department of Labor’s Wage and Hour Division. “It’s sort of the folk legend that, ‘I’m paid a salary, therefore I don’t get paid overtime.’ There’s a lot of ignorance out there among employers and employees.”
So listen up: Under the new regulations, salaried employees who make under $47,476 a year are entitled to be paid time and a half for anything over 40 hours a week. Until now, that threshold was $23,660 a year. If you’re an hourly worker, you already qualify for overtime. And if you make more than $47,476, you still might qualify, but it depends on your job duties.
The White House estimates this will benefit 4.2 million workers. They’ll either get a raise, so they’re above the $47,476 threshold; get paid overtime for extra work; or get their hours cut back. The Huffington Post’s Dave Jamieson explains further, calling it a “BFD.”
This should especially affect low-paid restaurant and store managers, said Hancock, now an attorney at Cohen Milstein Sellers & Toll in Washington.
“It’s not at all uncommon for them to earn a very low salary, $28,000 to $30,000 a year, and be expected to work fairly grueling hours,” he said. “People are just being worked to the bone, and either they’ll be paid more and continue to do that, or the employer is going to reduce their hours and those people will have more time to themselves.”
The full article can be read here.