The Labor Department’s new overtime rule proposal changes the minimum salary level for overtime exemption from $23,660 to $50,440 starting in 2016 or whenever the rule is implemented. Currently, of course, just offering a salary at a certain level doesn’t mean an employee qualifies–the job description still has to meet the qualifications for exemption. This change means everyone earning less than $50,440 is automatically eligible for overtime, regardless of actual responsibilities.
To be clear, while the goal of this change is to makemore people eligible for time and a half for working overtime, it’s a huge step backward. We’re not the manufacturing economy that the original Fair Labor Standards Act was designed for. We’re a knowledge economy and knowledge is much harder to measure in terms of hours than manufacturing is. You can’t accurately judge how long it took someone to come up with an idea, the way you can judge how long it took someone to manufacture a widget. Do you pay someone for the time they spent pondering a work related problem while jogging? It’s complicated.
You can’t pay for knowledge by the hour. But this new rules make you do just that. Here’s what you need to do to implement the new rule.
To keep reading, click here: The Nightmare of the Labor Department’s New Overtime Rule