NEW YORK — Starting December 1, 2016, the federal threshold for overtime pay exemptions will dramatically increase from the current $23,660 to $47,476.
The nearly doubling of the national overtime threshold will have an important impact on both businesses and employees that workers need to be aware of as the implementation date approaches.
The new overtime law is expected to have various repercussions on more than just payrolls and individual salaries. Some economists predict companies will have to change the way they hire, promote, and even staff until industries properly adjust to the new regulations.
However, most ordinary folks on salaried wages simply want to know if they will end up getting a pay increase if they make less than the new overtime threshold. The answer to that question depends entirely on the individual’s situation and the inclination of the employer on how to deal with the update to the Fair Labor Standards Act.
Effects of New Overtime Laws
Some hourly workers already earning close to the new overtime threshold could see a pay increase from their employer. However, the relatively modest pay increase would mean the employee could end up working much more than 40 hours per week and would be paid a flat amount every pay period.
It is important to remember that only certain types of workers can be paid on a salaried wage and their job duties must correspond to federal guidelines on overtime exempt employees. Employers cannot simply put any employee they wish on salary and declare them overtime exempt.
Other salaried workers making between the current overtime threshold and the new one may end up being reclassified as hourly employees and having their hours capped at no more than 40 per week. Any time spent working over the 40-hour threshold would result in overtime pay for these types of workers.
Another unfortunate side effect of the new law could be hours reductions or even layoffs. Some employees may be fired and replaced by hourly employees as a cost saving measure altogether.
Unpaid Overtime Lawsuits
Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you feel that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.
Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.