The word has come from Washington: By year's end, new federal rules could bring overtime protection to more than four million American salaried workers – more than 100,000 of them in Michigan. Salaried employees earning up to $47,476 dollars a year will be paid time and a half when they work more than 40 hours a week. This is compared to the current law that states salaried employees must make less than$24,000 to receive overtime.
Michigan State University economist Charles Ballard says the number of salaried workers who do not get paid for overtime has gone up dramatically. In 1975, most salaried workers were eligible for overtime. Now it is estimated that only 7% of them are eligible.
There could be different responses to the new laws. Ballard and Brian Kreucher, an employment law specialist at Howard & Howard in Royal Oak, say some employers will pay additional overtime, while others will raise salaries over $47,000 threshold. Other employers might cut back hours for workers and hire new part-time employees to pick up the slack.The new laws will go into effect on December 1.
An interview with economist Charles Ballard and employment law specialist Brian Kreucher.
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