If you make less than $47,000, you’ll want to read this.
We can all comfortably agree the 40 hour workday is long gone. It’s a history lesson, floating in the winds of an easier time when you could actually relate to Dolly Parton’s “9 to 5” song.
With the economy still sputtering along, businesses are doing what they can to stay afloat… and sometimes that affects employee compensation and output.
Nowadays, people are pulling, easily, 50 hours a week to keep up with the demands of the job. If those people working extended hours are salaried, chances are they are not adequately compensated. Let’s face it: no one likes working for free.
Well, just like the 40 hour work week, working overtime at the cost of absolutely nothing to your employer is also going the way of the dinosaurs.
Fox 61 reports that the new federal law, the Fair Labor Standards Act, rolls into effect on the 1st and will permanently change the way people are compensated.
So, if you make less than $47,500, you are now eligible for overtime – even if you’re salaried. Before, the threshold was $23,660.
The change won’t be easy for employers. In order to make sure they still make a profit while compensating their workers fairly, they have to do major payroll evaluations. This means they either have to put more money aside to pay those who work over 40 hours a week or make their employees exempt by raising their salary over the $47,500 threshold.
And the threshold will continue to match the rate of inflation, which is projected to reach $51,000 by 2020.
In order to achieve that, it may mean that bonuses, paid time off, and incentive plans may be radically readjusted to meet their new financial requirements.
However, not all workers will be affected by this new law. For example, any field excluded from FLSA rules, such as movie theaters and agriculture, will not benefit from the new law. In addition, particular jobs governed by other federal laws, such as rail workers and truck drivers, will not be affected.
So, if you’re unsure if your line of work is exempt from the new FLSA guidelines, ask your employer or click HERE