How Will New Overtime Rules Affect You?

Eyewitness News is learning more about the effects of the federal government's plans to adjust how salaried employees are paid.

Starting on December 5, any salaried employee making less than $47,000 per year is eligible for overtime.

Right now, it's any salaried employee making less than $23,000.

It's been that way for more than a decade.

Many of the proponents of the change say that it will help workers be justly compensated and help expand wage earnings.

However, it's possible not everyone will make more money due to the change.

USI Economics Instructor Tim Mahoney says, " You'll get people switching roles from being a salary person to being an hourly wage. That could well happen. So there could be promotions. There could be. If a person is just under that $47,000 they may boost them up to $50,000 so therefore they don't get overtime.”

He adds that this does add to complications for employers.

They're already dealing with adjustments for the Affordable Care Act and in some states they're dealing with higher minimum wage.


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