Are you aware that the Department of Labor and the Fair Standards Act will mean higher costs for some companies? Millions of additional Americans will qualify for overtime pay under a major change in federal labor law announced recently by the Obama administration.
The change under the Fair Labor Standards Act doubles the annual salary threshold – to $47,476 from the current $23,660 – that generally determines who qualifies for overtime pay when they work more than 40 hours a week.
That means salaried workers who earn less than $47,476 will now be eligible for overtime pay. The change tax effect December 1, 2016.