New federal overtime rules for salary employees

Posted at 5:32 PM, May 18, 2016
and last updated 2016-05-19 00:55:34-04

The days of working overtime for free could be coming to an end for millions of people. The Department of Labor is raising the bar on federal overtime protection. The Obama Administration says it will impact more than 4 million people.

"All the Obama Administration is doing right now is putting it back to where it's supposed to be," Attorney James Thompson said. 

Thompson specializes in labor and employment law. He explains the rules only impact administrative and managing positions. It also makes it more difficult for employers to give employees misleading titles so they can be paid salary.

Currently, anyone making a salary of $23,660 or more doesn't have to get paid overtime under federal regulations.

"Someone working under them making minimum wage would make more than they would (if the salaried employee worked 60 hours in a week)," Thompson said.

Now the Department of labor is doubling that threshold to about $47,500. The department says employers have four options: Pay time and a half for overtime, limit hours worked to 40 hours per week, raise the salary to the new threshold or a combination of the other options.

Still, some are pushing back. The National Retail Federation says the increase is bad for employees and employers. A statement released by the NRF says, "the rules will force employers to limit hours or cut base pay in order to make up for the added payroll."

Not all jobs are covered either. Teaching is one profession that is exempt.