Earlier this year, the White House announced a new rule that may impact your paycheck. The ruling stated that anyone making an annual salary under $47,476 will automatically qualify for overtime pay once they work past 40 hours per week. This is quite a large change since the threshold was only a salary of 23, 660 before this ruling was made in Washington D.C. According to Labor Secretary Thomas Perez, 35% of salaried workers will automatically become eligible once this change becomes available.
Expect this change to start on December 1, 2016.
This ruling was created to expand overtime pay access for low-paid workers who work long hours and have been exempt for overtime pay. The $47,476 threshold will be re-evaluated every three years to ensure that it stays at the 40th percentile of full-time salaries in the lowest income region.
Are you eligible for overtime pay?
If you make under $47,476 you may think that you’re eligible for overtime. However, consider these other factors. Your employer will be able count the bonuses they give you and your commissions when considering your salary. For instance, if your salary is $45,000 and you get a $3,000 bonus, your total income will total to $48,000. This means you are exempt from the new overtime pay rules that will begin on December 1, 2016.
What can workers expect on the first of December?
If you do qualify for this overtime pay eligibility, you can look forward to a few different things. Perhaps, you can expect more pay or maybe even get more free time. Depending on your employer, you may not work over 40 hours per week after December 1, 2016. Otherwise, if you do work more than 8 hours per day, expect to see an increase in your paycheck. Talk to your employer about the impending overtime pay change to find out exactly what to expect come December.