Perhaps you have heard the news that some changes in the pay schedule may be coming to your workplace. A new federal law changes how much salaried employees make.
"The salary level is going from $455 per week, which is current, to $913 per week," Christina Coleman-Lovelace with the U.S. Department of Labor said.
It's all part of the US Department of Labor's overtime law. The change from $455 to $913 per week is for salaried employees only.
"Your hourly employees are those who are at $7.25 per hour," Coleman-Lovelace said. "That's the minimum wage that we enforce."
Coleman-Lovelace said there aren't any changes for hourly employees.
"There's that salary level, that salary basis and then there's the job duties," Coleman-Lovelace said. "Those are the exemptions that are required to be salary level. If they're making less than the $913 per week, they're not considered a salaried employee."
US Department of Labor Officials said if an employer cannot pay a salaried employee $913 per week, he or she will need to move that person to hourly.
"This will give everyone a great opportunity to do an audit," Coleman-Lovelace said. "To make sure that everyone is classified to where they need to be."
So, how do companies determine who meets the criteria for a salaried employee?
"To be a salaried employee, you have to meet those three exemption tests which includes the salary basis, the salary level and the job duties," Coleman-Lovelace said. "It can't just be title driven. You can't be an 'executive director of waste care management,' and you don't do anything but empty the trash and you're salaried."
The new law takes effect December 1, but companies were notified of the changes back in May.
There is a lot of information about the overtime law. Learn more at www.dol.gov/WHD/overtime/final2016.