New Overtime Pay Ruling What You Need To Know

College, Career, Life Career and life planning resources for faculty students, recent grads, and profession-changers. Primary Menu New Overtime Pay Ruling: What You Need to Know Andrea The U.S. Department of Labor’s latest determination on overtime pay extends to 1.3 million U.S. staff. Previously workers had been automatically entitled to additional time pay only if they earned $23,660 or less a 12 months, says Employco USA president and compensation professional Rob Wilson. But, starting on Jan. 1, 2020, that salary ceiling shall be raised to $684 per week or $35,568 per yr. However, if a state has a higher threshold, this ruling does not apply. The federal legislation is the minimal and states are free to have higher thresholds for overtime pay. Therefore, it’s essential to know the legal guidelines in your specific state. And it isn't simply staff who earn beneath the $35,568 threshold who shall be eligible for extra time. “If a worker earns more than $35,568, but their duties usually are not managerial, they could still be eligible for overtime,” says Wilson. “That is why it is so essential for employers to turn out to be educated in regards to the rules of their specific trade and of their state. A employment options agency like Employco could be invaluable in serving to employers to demystify these evolving additional time necessities.” As Inc.com factors out, workers most probably to be affected are retail and restaurant managers. Part-time staff are also more likely to be affected as there isn't any exemption for part-time staff. Visit the Department of Labor’s web site for extra data on additional time pay rules. Categories Blog, employment, money Tags compensation, employment, regulation, additional time, pay Post navigation