In a what may prove to be a landmark regulation for employee rights, the Obama administration has announced that the salary cutoff for overtime pay will be increased effective December 1, 2016. Workers who earn less than $47,476 a year will now be eligible to receive overtime pay if they work more than 40 hours in a week. This new salary threshold, which is a marked increase from the previous $23,660, has been established in hopes of helping middle-class workers earn more for working overtime. The Labor Department estimates that this new regulation will make 4.2 million workers eligible for overtime.
However, the regulation has not come without its criticisms. Many workers are concerned for their pay, stating that this increase in overtime will have employers setting salaries hovering just above overtime eligibility. Many more are concerned that their wages will be lowered and their hours kept the same, resulting in unchanged yearly earnings.
It will take time to see if this new regulation will be beneficial to workers or not. In the meantime, the experienced Philadelphia employment lawyers at Sidney L Gold & Associates P.C. will continue to aggressively stand up for employee rights in the workplace. If you or someone you know is having a dispute over wages and overtime, please call us at 215-569-1999 or contact us online for a free consultation.