On December 1, 2016, new rules went into place regarding the payment of overtime to exempt salaried employees or those who are "white collar" workers. The minimum salary for these workers increased from $455 a week to $913 a week and the highly compensated executive threshold rose from $100,000 to $134,000. —
Furthermore, the law put into place a provision that states these figures are automatically updated every three years to be certain income levels used are a meaningful and useful test for exemption. Any person who works more than the agreed-upon number of hours will need to be compensated accordingly as outlined by the rules.
However, the law only affects a certain portion of workers. It is restricted to those who are full-time, make more than $24,000 a year, are paid on a salaried basis, and are able to pass a specific test of duties in their work environment. Any person who fails to do so is not qualified to receive overtime pay under the law.
The law has been debated since its inception, with many people stating the best way to provide better pay for these individuals is to raise their salary. Certain states have already taken action and opted to guarantee a living wage in those areas where $24,000 is not sufficient. However, business owners continue to have more leverage than their employees, and the Trump administration is standing on the side of the owners.
When the law went into effect in 2016, the overtime salary threshold was set at $47,000. The Trump administration chose not to continue with this amount, instead reducing it to $35,000 a year and the workers are the ones who will be harmed. More Americans will be forced to work for lower wages and pay expensive childcare to do so.
Employers can demand employees respond to work issues regardless of the time of day, and all employees will ultimately be affected. This includes those who aren't subject to these overtime pay rules, as the government is no longer working to protect all employees.
The rules, furthermore, don't take into account wage stagnation and inflation. When inflation is considered, the overtime exemption should actually apply to those employees making up to $55,000 a year. In the 1970s, more than 60 percent of Americans were eligible to receive overtime. Today, only seven percent will qualify, and those who do not will miss out on roughly $1.2 billion per year in compensation. This spells disaster for parents who must work.
Parents might find they can no longer afford to work, as the cost of daycare has simply become unaffordable on their current salary. The economy won't benefit when individuals leave the workforce, and these are only some of the drawbacks of this change in the law. The government will likely need to step in and take action if this happens.
Workers need to speak up when their employees are acting unfairly. Furthermore, they must speak up when an employer is in violation of the law. However, many are hesitant to do so, as they don't want to lose their job. These men and women can benefit from protection for whistleblowers.
Anyone who is concerned about speaking out should speak to an attorney right away. Brady & Associates fights for workers every day and handles cases of this type so employers are treated fairly. Contact them for more information today.
Release ID: 88917261