Congressmen Want To Make Overtime Reform More Gradual

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July 18, 2016

In May, a law passed that would increase the number of employees who are eligible for overtime pay. Currently, employees who make $23,660 or more per year are often exempt from paid overtime. The new law, however, increases that amount so that anyone make less than $47,476 or less is eligible. This sizable increase makes sense when you consider it has only been updated twice in 40 years.

As Oregonlive.com reports, some U.S. Congressmen are worried employers have not had enough time to prepare for the increase which is scheduled to take place on Dec. 1. Without enough time to prepare, cuts and demotions at many businesses will become the norm.

The new plan, however, known as the Overtime Reform and Enhancement Act, looks to have a 50 percent increase come Dec. 1, to $35,984 and then the threshold will be gradually raised, at a rate of $74 per week, until December 1, 2019 when it hits the proposed $47,476 threshold.

In order for this to happen, the Overtime Reform and Enhancement Act will have to pass the house and the Senate and be signed into law by President Obama.

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