The Department of Labor recently announced a final rule that forces businesses to pay overtime wages to a substantially larger group of employees who work more than 40 hours a week. Under the new guidelines, 1.3 million workers will now be eligible for overtime compensation. While this is good news for some workers, the initial proposal under the Obama administration would have covered 2.8 million other workers.
Prior to this overtime rule, only blue-collar workers and professionals earning less than $23,000 a year can earn overtime pay under federal law, with a few other exceptions. The Trump administration’s new rule raises the salary requirement to $35,568, but future changes to this requirement won’t be adjusted for inflation.
Here is how the new overtime rule will affect certain types of workers: If you are a salaried employee who receives a W-2, and you earn less than $35,000 a year, you likely qualify for overtime pay under the new rule. Hourly employees should already be receiving overtime pay.
The new rule will go into effect on January 1st, 2020.
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