New Overtime Law Impacting Millions Of Workers Goes Into Effect Dec. 1

INDIANAPOLIS, Ind. – A new federal law goes into effect on Dec. 1st that could potentially affect millions of workers across the U.S.

Businesses have been scrambling to prepare for the onset of the Fair Labor Standards Act, which changes the threshold for overtime pay to $47,500. Salaried workers who make less than that are eligible for overtime pay when they work more than 40 hours in a week.

As the rules currently work, companies can avoid paying overtime to full-time salaried employees making as little as $23,660 by classifying them as “exempt.” Those workers aren’t entitled to overtime pay even if they work more than 40 hours a week.

The law that goes into effect on Dec. 1 changes that. The White House said the 40-hour workweek has eroded over the years, with workers putting in more hours without being compensated for them.

What does that mean for companies? They’ll have to anticipate higher payroll costs, either by paying out more in overtime or raising the salaries of employees so they hit the $47,500 threshold to become exempt employees.

Companies could also make changes to paid time off, bonuses and incentive plans to compensate.

In Indiana, the law is expected to affect nearly 250,000 workers.

The salary threshold will be updated every three years. Based on projections, it is expected to rise to $51,000 by January 1, 2020, after the first update.

5 comments

    • arnold fudpucker

      Then the people will scream that the bad old repubs took something away. Typical demoncrap playbook stuff. Give someone else’s money away then blame it on the guy who gets stuck with the excessive cost. This hopefully will be reversed but the damage will have been done by the bad feelings and anger of those who temporarily received this outrageous bribe from the evil demoncraps.

    • arnold fudpucker

      You don’t get the point other than the one on top of your head. The gubbamint arbitrarily stepping in with a rule that has not been thought through will only hurt US businesses. Of course that was what your boy obumma wanted to do. Why the repubs didn’t have the spine to react to this is saddening but not surorising. Tell you what mike how would you like it if the gubbamint strolled in to your house tomorrow and told you that you had to double what you were paying your lawn mower guy OR Else! Bet you wouldn’t see it as so funny then. Making up rules that increase the cost of doing business in the USA is why so many have left dummy!

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