Federal Overtime Laws Are in Effect

By: Laura Speakman
By: Laura Speakman

Monday, federal regulations concerning overtime pay went into effect. Employees making less than $23,660 a year will be paid for working more than forty hours a week. Employees making more than $23,660 can only receive overtime depending on their duties.

Managers who hire and fire employees will not be eligible for overtime pay. Administrators exercising independent judgment and discretion will also not be paid for overtime work.

According to Glen Hodge of the law firm Wharton, Aldhizer, and Weaver, their pay takes their duties into consideration. "Here in the Valley, and I think this is common with a lot of employers, they think that if they have an employee, an office worker who is salaried then this automatically makes them exempt, and that isn't the case. You have to look at what duties that person is performing," said Hodge.

The law also includes a "highly compensated exemption." If you make more than $100,000 a year, you are not eligible for overtime pay. Hodge says he assumes the Department of Labor feels those employees can take care of themselves.

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