Change is a must and throughout the years, American workers have seen a great shift in their expected hours and pay for overtime work. Overtime wasn't introduced by the Fair Labor Standards Act until 1938! Before this time, employees were expected to work excessively long hours, for little to no compensation. This was the ultimate debut of the idea of a 40-hour workweek. In 2004, the threshold salary was set to $455 a week. In only 2016, the new standard salary was changed to $913 which was invalidated in 2017, returning the threshold salary to $455. However, in September of 2018, it was announced that they have a new final rule on the subject of overtime pay.
These exemptions allowed for 1.3 million American workers to be eligible for 1.5 times their regular hourly pay for overtime. The FLSA overtime exemptions vary depending on your city and state, so be sure to be aware of what changes have been made in your area in 2020.
It's crucial to check your budget with this new ruling to ensure that you won't find yourself losing funds. If it appears you can't afford overtime pay, it may be time to reassess your job descriptions and create rules regarding a limit to overtime. If you find it to be more beneficial, you can even raise the salaries of your employees to make them ineligible for the overtime ruling
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