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What the New Overtime Rules Mean for You and Your Boss

Among other things, the rules might help your organization change the way it’s thinking

Thomas More Smith
Tue, 06/14/2016 - 11:13
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Last month, the U.S. Department of Labor outlined changes to the existing overtime exemptions. Is this a win for workers? And a loss for employers? In truth, the real effect on both groups and the economy is much more nuanced.

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As you are probably aware, some employees are exempt from being paid overtime, meaning their employers don’t have to pay them extra when they work more than 40 hours in a week. The Fair Labor Standards Act outlines the criteria for this exemption.

Employees currently qualify for exempt status by clearing two hurdles: 1) the duties test (i.e., position is executive, administrative, or professional); and 2) the salary test (worker earns at least $455 a week or $23,660 a year).

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