The Labor Department has issued a rule that doubles the salary threshold for overtime exemption, effective Dec. 1. This is a big change for business owners and workers alike. But why? And how big? Here’s an explanation.
What’s an overtime exemption? Is it good or bad?
It depends on which side of the payroll you’re on. Employers, generally speaking, like their workers “exempt.” Workers, by and large, prefer to be “nonexempt.” This is because to be “nonexempt” means to be protected under the minimum wage and overtime provisions of the Fair Labor Standards Act. Workers who are “nonexempt” are entitled to be paid a certain minimum wage (currently $7.25 per hour nationwide, but higher than that in most states), and are also entitled to be paid time-and-a-half for any time spent working beyond 40 hours in a week.