Should I Be Getting Paid More Because of the New Federal Overtime Rules?

Come December 1, new federal overtime rules are set to bring major changes to the paychecks of many employees in North Carolina and throughout the US. Under these new rules, for an employee to be designated as salaried, he or she will have to make a minimum of $47,500 a year. This is a massive increase from the current minimum of $23,660. According to the US Department of Labor, this change could affect the salaries and/or employment status of more than 4 million workers around the country, including over 150,000 employees in North Carolina.

How Do the New Federal Overtime Rules Work?

The impact of the change to the federal overtime rules will mostly be an issue for employers that have to decide whether to categorize highly skilled professionals and administrative staff who routinely work over 40 hours a week as hourly or salaried employees. Currently, many of these employees are categorized as salaried, but make below $47,500 annually, so they are not paid overtime if they work over 40 hours a week. Under the new overtime rules, these workers’ employers will have to decide whether it’s more affordable to:

• Raise their salaries to $47,500 a year and keep them categorized as salaried;
• Or keep their salaries below $47,500, categorize them as hourly and pay them overtime when they work over 40 hours a week;
• Or keep their salaries below $47,500, categorize them as hourly and limit them to working 40 hours a week or less.

At Riddle & Brantley, we follow all wage and hour laws. In addition, our employment law attorneys can help you if you believe you have been the victim of wage and hour law violations. We are also always available to answer any general questions you may have regarding employment law issues. If we cannot answer your question, we will provide you with information about other resources that may have the answers.