Very Important News for you, If you work more than 40 hours per week for the same weekly salary
I work way more than 40 hours a week for the same weekly salary. My boss says that he doesn’t have to pay me anything for my overtime hours. Is this true?
- It depends. Under the old rule, Anyone who earned a weekly salary of at least $455 per week and was considered Executive or Administrative was exempt from the overtime laws, and did not have to be paid for their overtime hours at all. In order to be exempt, the employee has to have what’s called “substantial discretion”, which means that they have to be able to make some pretty important decisions on their own on a regular basis. Various other conditions have to be met as well. This usually includes supervisors, managers, and certain office people who make important decisions. Many times when the boss says that you are not entitled to overtime, you might very well be, and you won’t know without asking an Employment Lawyer.
How is the New Rule Different?
- The biggest change in the rule is a big increase in the minimum weekly salary.
How Much Did it Go Up?
- In New York City, the minimum salary is now either $825 a week if the business has 11 or more employees. It is $787.50 per week if the business has 10 employees or less. Outside the City, these limits are a little lower.
What’s the Practical Effect of This Rule for Me?
- Your boss now has to do one of two things if you are salaried and considered executive or administrative: 1) Increase your salary to the $787.50 - $825 per week level or 2) Start paying you time and a half when you work more than 40 hours.
When Does the New Rule Go Into Effect?
- This rule goes into effect on December 31, 2016.
What’s so great about this?
- These exemptions were originally meant for highly-paid employees who had better benefits, job security and opportunities for advancement, but because the minimum salary cutoff is hasn’t changed for such a long time and was far too low, many middle class workers, managers, and people with executive duties had no right to overtime protection. Their employers forced them to work ridiculous hours at no additional labor cost, any they legally couldn’t do anything about it.
- This will change all that, and require employers to either i) raise their salaries; or ii) pay them time and a half for their overtime; iii) give them more time off; or iv) some combination of those things. This is a win/win for all the workers covered by it. The employer will now have to be conscious of how long he is making his employees stay, or start paying them more money.
Where Can I Find the Actual NY State Law?
- If you want to read the new rule, at p. 11 § 142-2.14.
Was There Any Change in the Federal Rule on This?
- By order of President Obama, the U.S. Dept. of Labor enacted a new federal rule that would have raised the minimum weekly salary to $913 per week, but a judge has already stopped it from going into effect. The new Secretary of Labor appointed by President Trump, Andrew Puzder, (who became very wealthy in the fast food industry) is strongly opposed to any increases in the minimum wage, so the new federal rule will not go into effect. So much for President Trump helping the working man.