In Part 1 of this series, we discussed how and why the salary minimum for the “white collar” overtime exemption may soon change. In this post, we’ll examine how workers will be impacted by the Department of Labor’s (DOL) new proposed rules.
How Many Workers Will Be Affected
The DOL predicts that if the proposed change becomes final, 4.6 million more workers will become eligible for overtime pay during the first year the change goes into effect. Those millions of workers will include people who are classified as executive, professional, or administrative, and who earn more than $23,600 but less than $50,440 per year (more than $455 but less than $970 per week). Over the next 10 years, an additional 5.6 million more workers could also become eligible for overtime because of this rule change.
When the Change May Go Into Effect
The proposed change will become the law if the DOL issues what’s called a Final Ruling. That is likely to take at least several months. The exact details of the new rule, including the salary minimum, may change from the proposed rule, but the salary minimum is likely to be at least twice as high as it is now.
While the change, if it goes through, will benefit millions of workers, employees should also anticipate how employers might react. Some employers may try to lower their salary costs either by decreasing the number of workers on staff or by hiring more people to reduce the need for anyone to work overtime. Overall, though, the change should be very positive for many U.S. workers, and our team believes it is long overdue.
Are you confused about your rights in the workplace? Call Joseph & Kirschenbaum LLP right now at (212) 688-5640, or email the team at email@example.com, to explore what you can do about an employer who has harassed you or violated other laws, like the Fair Labor Standards Act (FLSA) or New York Labor Laws (NYLL).