Overtime Pay
- APC
- Jan 1, 2016
- 1 min read
The Department of Labor’s recent changes to the overtime eligibility rule are cause for alarm. The new federal ruling raises the threshold for employees to be exempt from overtime pay from $23,660 to $47,476 and goes into effect December 1, 2016, and pegs it to inflation.
According to the National Center for Policy Analysis, the rule will cost the restaurant and retail industries $2 billion annually. Not only will a larger portion of the workforce be required overtime pay, but the move will also negatively impact flexibility for employees and increase administrative and operating costs.
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