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Is your OT a thing of the past? How Does this affect us ?

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posted on Aug, 23 2004 @ 08:52 AM
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Controversial new rules on overtime pay went into effect today, with the Bush administration and labor advocates squabbling over how many U.S. workers are affected by the change. The changes mark the first major overhaul of the federal overtime law in more than 50 years. The AFL-CIO says the new rules will bar 6 million workers from getting time-and-a-half.

The Labor Department says the new rules will strengthen overtime rights for 6.7 million American workers, including 1.3 million low-wage workers who were denied overtime under the old rules.

CNN Article 1
CNN Article 2

Under the law, there are three primary tests for determining who is eligible ("non-exempt") and who is not ("exempt") from overtime pay.

First up is the "salary-basis" test. To be exempt from overtime, workers must be paid a set salary, not an hourly wage. This has long been the rule under federal overtime law. The new rules don't change this requirement.

The second criteria, called the "salary-level" test, has been amended. In order to be exempt from overtime, the new rules require that employees earn a minimum salary of $455 a week, or $23,660 a year. That's triple the prior minimum salary of $155 a week, or $8,060 a year.

White-collar employees who earn more than $100,000 a year are automatically exempt from overtime pay under the new law. That wasn't the case before, although many high-income workers have been exempt for other reasons besides their income level.

The third test is where the rules get considerably more complicated -- and controversial. The final prong is called the "duties" test. It tries to establish eligibility based on the type of work an employee performs every day. Under federal law, a worker whose job is deemed "administrative," "professional" or "executive" in nature does not qualify for overtime. The categories themselves won't change.



OT pay: Winners and losers
NEW YORK (CNN/Money) - Don't know if you're owed overtime pay? You're not alone.

On Monday, new federal rules detailing which workers get time-and-a-half and which ones don't are due to take effect. The changes mark the first major overhaul of the federal overtime law in more than 50 years. In response, employers and employees alike are scrambling to figure out what they mean.

With some 500 pages of legalese to pour over, the task isn't easy.

CNN Article 3

CNN Article 4

Understanding overtime rules is not as easy as it looks.
In a nutshell, the revamped regulations are easy to comprehend if your yearly income is roughly under $23,000, or if you take home more than $100,000 a year. For middle-income workers, however, understanding the rules can trigger a migraine.

The basic idea behind the Fair Labor Standards Act holds that workers in so-called "white collar" jobs can, under certain instances, earn extra pay for workweeks that exceed 40 hours.

Under the law, there are three primary tests for determining who is eligible ("non-exempt") and who is not ("exempt") from overtime pay.


Okay, so is everyone else as confused as I am ? I'd like to use this thread to discuss, weather or not "we" are entitled to OT pay or not ? We don't have to give our actual incomes, but we could estimate and hopefully come up with answers.

Also, is it going to be up to our employers to let us know if we are now entitled to OT pay? for the past 3 years, I have been a salaried employee working more thatn 40 hours per week, is my employer just going to come to me and tell me that now, I get OT pay.

Too many changes, too many new "rules" to understand... any experts here that can explain this in a way for the common person to understand ??


EDIT: Corrected links.


[edit on 8-23-2004 by Valhall]




posted on Aug, 23 2004 @ 08:57 AM
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sorry guys, I just realized there is another thread on this... in Politics..

However I'm looking at it another way... I've linked two other articles in this thread, so trash it or leave it...

I'm just looking for an explanation...



also, I've asked for someone to fix my links, I screwed that up somehow..and can't fix it...


okay that's it.

thanks for playing.



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