Wednesday, March 12, 2014

If you are a "salaried manager" making MORE than $455 per week but LESS than ??, you will want to read this. Your paycheck may be changing in the near future.

Today the Obama Administration will direct the Department of Labor to revise an important regulation on the payment for overtime as it pertains to workers classified as "managers/supervisors" who are paid a fixed salary instead of an hourly wage, regardless of the number of hours worked.

There is a VERY low threshold under the Department of Labor regulations that allows employers to classify someone as a manager. It can be as few as TWO workers that the manager manages or if they have some day to day control over functions of a business. See HERE for more on that.

Right now, a business is required to pay someone in a management position at least $455.00 per week in salary to avoid paying over-time.  The Department of Labor has some defined parameters for who is considered a manager HERE.

At this point, it is not known exactly what the Administration will propose as a new threshold BUT with a tiny bit of research it seems like there is a consensus that it will be around $650.

This means if you are now paid somewhere BETWEEN $455.00 and $650.00 (tentative!) for your management expertise, then your employer will have to consider ANY overtime hours you work and pay you accordingly for them OR they can bump you up to at least $650.00 per week.

Or they could decide you are not worth that much at that pay level and cut your position and consolidate your duties with a manager already making over $650.00 per week.  Ouch.

Implementation of this won't happen any time soon, though.  It has to go though regulatory approval.

I will provide more details when they are released.
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