The Perks of Over­time’s Get­ting Bet­ter With Time

The HR Digest - - Hr Drift -

The White House Of­fice of Man­age­ment and Bud­get has taken new rules re­gard­ing over­time un­der re­view. The lat­est reg­u­la­tions by the U.S. Depart­ment of La­bor will ex­po­nen­tially in­crease the num­ber of em­ploy­ees el­i­gi­ble for an over­time shift.

The de­ci­sion for re­view taken by the White House Of­fice of Man­age­ment and Bud­get sug­gests that new rules re­lated to over­time may take its course sooner than an­tic­i­pated, which means in April or May 2016 by the lat­est. Pre­vi­ously, the course of action was ex­pected to take place in July 2016.

In 2015, Pres­i­dent Barack Obama an­nounced a fresh pro­posal to hike the min­i­mum weekly wage from $455 to $970 for over­time ex­empt work­ers. In other words, for an ex­empt em­ployee, the min­i­mum an­nual salary will be in­cre­mented from $23,660 to $50,440. The min­i­mum hike in the an­nual salary of em­ploy­ees will only take place if the Depart­ment of La­bor ac­cepts the pro­posed rule and re­vises the cur­rent reg­u­la­tions for min­i­mum salary un­der the fed­eral law, Fair La­bor Stan­dards Act.

Among the few other changes in­tro­duced un­der the new rule, work­ers who at present work for one of more pro­fes­sional, ex­ec­u­tive, ad­min­is­tra­tive, or any other ex­emp­tions, yet whose an­nual salaries are less than $50,400 will be re­in­stated from ex­empt to non-ex­empt from the FLSA’S over­time pro­vi­sions.

Em­ploy­ers will have to main­tain the track of time records for such work­ers and pay the over­time rate, which would be 1.5 times the reg­u­lar pay rate of an em­ployee for each hour.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.