
New labor rule mandates time-and-a-half overtime pay for lower-paid salaried employees
Starting July 1, employers will be required to pay qualified salaried employees time-and-a-half for more than 40 hours worked.
There are many positions that have historically been exempt from overtime, including certain sales, professional and creative jobs.Should a low-salaried employee who does not make hiring, firing, or business decisions be exempt from overtime?
If the employee is salaried, why would the employer reduce his or her hours? That makes no sense at all. It would result in employees looking for other jobs, increasing employee turnover which can cost a boatload of money.There are many positions that have historically been exempt from overtime, including certain sales, professional and creative jobs.
The real effect of this kind of legislation is that the employer will now likely limit the employee's hours and that will result in a reduction in pay.
But now the employer would have to pay OT for over 40, where they didn't before. So they limit the employee's hours. That can also reduce employee tips and bonuses, performance pay, etc.If the employee is salaried, why would the employer reduce his or her hours? That makes no sense at all. It would result in employees looking for other jobs, increasing employee turnover which can cost a boatload of money.
If the employer doesn't want to pay OT, then they would limit the salaried employee to 40 hours, like employers who don't want to pay full-time hourly employees OT.But now the employer would have to pay OT for over 40, where they didn't before. So they limit the employee's hours. That can also reduce employee tips and bonuses, performance pay, etc.
Can't tell you how many employees I've had over the years who wanted to work extra hours at regular time because they needed the money, and I had to explain to them that I couldn't legally do that.
My employer stopped the OT pay when they put us on the bonus plan. Got a bonus the next year then went in bankruptcy for 8’years with no extra pay of any kind. It was a bummer.But now the employer would have to pay OT for over 40, where they didn't before. So they limit the employee's hours. That can also reduce employee tips and bonuses, performance pay, etc.
Can't tell you how many employees I've had over the years who wanted to work extra hours at regular time because they needed the money, and I had to explain to them that I couldn't legally do that.