New
employment regulations affecting the overtime eligibility of millions of US
workers have been introduced.
Those
earning $23,660 (£13,322) or less a year are now eligible for time-and-a-half
when they work more than 40 hours a week.
Under
the old rules, overtime rights were granted to anyone earning less than $250
(£140) a week – the equivalent of $13,000 (£7,280) a year – but the new limit
will make more than a million additional low-wage workers eligible for overtime
pay.
The
US Department of Labor’s ‘FairPay‘ rules guarantee overtime
pay for more than 6 million workers – and overtime accounts for up to a quarter
of their earnings.
Those
earning between $23,660-$100,000
(£13,322-£56,310) in most executive, professional, or administrative positions
are now ineligible – hiring and firing powers is one determinant of
ineligibility. While white-collar workers
earning $100,000 or more are now excluded from overtime pay.
However, police, firefighters,
and other public safety officers are unaffected, as are union workers covered
by contracts.
FairPay’s listings and job
descriptions may also disqualify millions of workers, including junior
supervisors, chefs, and employees with graduate degrees, who could all be
reclassified under the new system.
By
Joel Ceausu
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