It’s official. The new overtime rules have been released by the Department of Labor (DOL) and companies have until December 1 to comply. Here are the highlights:
- The regulations double the current salary threshold for salaried employees who are guaranteed overtime pay — from $23,660 (or $455 per week) to $47,476 (or $913 per week).
- This threshold will be adjusted every three years to account for inflation.
- The DOL estimates that this change in regulations will boost the pay for some 4.2 million workers across the country.
So if you’re a worker and regularly work overtime, what does this mean for you?
- If you earn more than $47,476 per year, then the new rules don’t apply to you.
- If you earn less than $47,476 and are classified as non-exempt, meaning you already receive overtime pay, then the new regulations don’t affect you either.
- If you make less than $47,476 and are exempt, then you’re in the group impacted by the new overtime law.
However, workers such as doctors, lawyers and teachers won’t be impacted by the new rules, regardless of the amount they earn.
If you are eligible for overtime under the new rules, how could it change things for you?
Under the new rules, you must now receive overtime pay (time and a half) for any hours you work over the 40-hour per week threshold. That sounds like good news. However, you may see some of these changes as a result:
- You may have to begin tracking your hours.
- Your employer might limit the amount of overtime you’re allowed to work and hire more part-time or contract workers instead to fill in where needed.
- If you already earn close to the $47,476 threshold, rather than paying you overtime, some employers might bump up your salary, so you’re ineligible for overtime.
- If you regularly work overtime and earn a base hourly wage, your employer could reduce that wage so that you still earn around the same amount when you include overtime.
At the end of the day, how you’re impacted depends on the course of action your employer takes. In other words, just because there are new overtime rules doesn’t mean you’ll receive overtime pay.
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