A new Department of Labor rule that raises the salary threshold for overtime pay protections will impact some 4.2 million workers in the U.S., including 85,000 workers in Missouri.
As of Dec. 1, current salaried “exempt” employees paid less than $47,476 per year will be shifted into “non-exempt” status. For every hour worked over 40 hours per week, employees will be paid time-and-a-half. In many cases, this means people who were formerly salaried employees now become hourly employees.
This rule was designed to update the Fair Labor Standards Act, which previously held “exempt” eligibility at $23,660 per year. To comply, employers can pay time-and-a-half for every hour worked over 40 hours per week, increase the employees’ salary over the threshold or restrict hours to 40 hours of work per week.
Although employers have had six months to prepare and implement changes in payroll and scheduling, many companies and employees remain unaware the regulations are changing. Many small companies and nonprofits are unable to pay employees high enough salaries to cross the new threshold yet still expect employees to work over 40 hours.
Read more: St. Louis Public Radio