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Personnel Today

Millions more staff eligible for overtime under new law

by Personnel Today 14 Sep 2004
by Personnel Today 14 Sep 2004

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.

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www.dol.gov/fairpay

By
Joel Ceausu

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

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