Page 8 The Skanner CAREERS EDITION June 1, 2016
CAREERS
CHRISTOPHER S.
RUGABER
AP Economics Writer
WASHINGTON
—
More pay? Or just fewer
work hours?
The new overtime rule
the Obama administra-
tion issued in May could
mean thicker paychecks
for some Americans who
work longer hours — or,
just reduced time on the
job.
The rule doubles the
salary level that employ-
ees must receive to be in-
eligible for overtime pay.
If they earn less than the
new threshold, they get
1½ times regular wages
for any work done be-
yond 40 hours a week.
The threshold will be
$47,500 a year, up from
the current $23,660.
Hourly workers are al-
ready entitled to over-
time pay.
Labor Secretary Tom
Perez said the change,
which will take ef ect
Dec. 1, will qualify 4.2
million more workers
for overtime pay.
The higher level is in-
tended to of set inl ation,
which has eroded the old
limits. Some retail and
restaurant chains pay
low-level managers as
little as $25,000 a year
and no overtime — even
if they work 60 hours a
week.
Business groups argue
that the rule will raise
compliance costs and
paperwork because com-
panies will have to track
workers’ hours more
meticulously. They also
contend that many small
businesses can’t af ord
either to raise managers’
salaries above the new
threshold or pay them
overtime.
Here are some ques-
tions and answers about
the new rule:
Q: I’m a manager at a
fast-food restaurant and
frequently work 50 or 60
hours a week. Am I now
going to get paid for the
extra time?
A: If you make more
than $23,660 but less
than $47,500, you will
now be eligible for over-
time pay. But that doesn’t
mean you will necessari-
ly get it.
The National Retail
Federation said about
one-tenth of salaried
employees newly eli-
gible for overtime will
probably receive raises
AP PHOTO/CAROLYN KASTER, FILE
Q&A: How New US Overtime Rules Could Help or Hurt Employees
In this May 6, 2016, i le photo, President Barack Obama speaks in the
briei ng room of the White House in Washington. Roughly 5 million
more U.S. workers will soon become eligible for overtime pay under
new rules issued by the Obama administration. The policy changes
would benei t many salaried employees in the fast food and retail
industries who often work long hours, are called managers, but are
paid just above the current $23,660 annual threshold that allows
companies to deny overtime pay.
high enough to lit them
above the $47,500 thresh-
old. They will make more
money, but won’t qualify
for overtime pay. Man-
agers paid more than the
threshold are ineligible
because they fall under
the so-called white-collar
exemption that excludes
supervisors and profes-
sionals from overtime.
Q: What if my salary
is still below the $47,500
threshold and I work
overtime?
A: Then you might get
time and a half. But the
NRF, for example, said
that more than half of sal-
aried retail and restau-
rant employees who earn
less than the threshold
will probably have their
base wages cut. As a re-
sult, even at er receiving
overtime pay, their over-
all income won’t change.
And an additional one-
third will probably have
their hours cut to below
40 hours a week, the re-
tail federation estimates.
Administration
oi -
cials disagree that pay
cuts will be so wide-
spread.
“These are their most
valuable employees,” Pe-
rez said Tuesday. “They
go to the bank and depos-
it the money. ... It’s irra-
tional to lower the salary
of your most trusted em-
ployees.”
Gene Martin, a 26-year-
old manager at a subur-
ban New Orleans Burger
King, said she would ap-
preciate the opportunity
to earn more for working
longer hours.
“Right now, I’m doing a
triple shit ,” Martin said.
“I would actually feel the
worth of it.”
Q: Will this help reduce
my time at work?
A: It could, if your em-
ployers cuts your hours
rather
than
paying
overtime. But if you’re
a doctor, lawyer, sot -
ware engineer or other
highly paid profession-
al, the new rule won’t
af ect you. Doctors and
teachers are specii cally
excluded from earning
overtime, and most other
professionals make more
than the threshold. The
rules assume highly paid
workers have the abili-
ty to bargain for either
larger salaries or more
time of .
Q: Does this mean I
will have to punch a time
clock and get paid hour-
ly?
A: If you are below
the threshold, business
groups said that could
happen. Companies will
convert you to hourly
status and closely track
your hours to avoid pay-
ing overtime.
“For most employees,
that’s viewed as a demo-
tion,” said David French,
a senior vice president at
the National Retail Fed-
eration.
Hourly workers typi-
cally receive fewer ben-
ei ts and are unlikely
to have paid vacation.
They also aren’t paid if
they leave early to attend
a parent-teacher con-
ference or other family
event.
But supporters of the
overtime rule respond
that it doesn’t force com-
panies to do any of this.
Employees who are eligi-
ble for overtime can still
be paid a salary and giv-
en l exibility over their
work time.
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