Posts tagged managerial
Biden administration working overtime to regulate working overtime
September 5, 2023 // ederal law says employees must be paid time and a half once they work more than 40 hours in a week. However, businesses may exempt workers from the requirement if their duties are “managerial” in nature and they reach a certain salary threshold. Currently, workers had to earn at least $35,500 annually before they were covered. The new rule, which goes into effect at the end of the year, raises that by almost $20,000. The administration estimates this would extend the rule to 3.6 million additional workers. The problem with the change is that it limits employers’ ability to work out alternate arrangements with employees where they work more than 40 hours in exchange for some other consideration, such as additional time off on other weeks. Under the new rule, employers are more likely to simply cut hours than to have to pay overtime at all.