The Department of Labor (\u201cDOL\u201d) has announced a proposal to update the regulations which govern overtime compensation for employees. Currently, the only way employees are automatically guaranteed time and a half pay for hours worked over forty per week is when they make less than $23,660 per year, or $455 per week. Moreover, employees today who make more than $23,660 per year can be given limited supervisory duties and can be called a \u201cmanager\u201d, making them exempt from overtime pay. For example, a Chipotle \u201capprentice\u201d working over 50 hours per week while only earning $36,000 per year was classified as exempt from overtime pay, though most of the job duties included preparing orders and working the cash register.\u00a0 Additionally, a store manager for Dollar General, working 60-80 hours per week earning only $34,700 per year was classified as exempt from overtime pay.\u00a0 The exception to overtime eligibility was not meant to apply to these types of workers, it was meant to apply to highly-compensated, executive, white collar employees.<\/p>\n
Under the proposed new overtime rules, many workers who were previously exempt will become eligible for overtime pay. The DOL is planning to raise the threshold to allow workers making up to $50,440 per year, or $970 per week, to automatically qualify for overtime pay. It is estimated that approximately 5 million workers will become eligible for overtime pay with the new overtime rules. This increase will be only the second since 1975, and is expected to occur in 2016.<\/p>\n
The new overtime rules will ensure that hard working employees are compensated fairly for the hours that they work.<\/p>\n