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New Overtime Pay Law Goes Into Effect On Dec. 1

NOV. 23 UPDATE: A federal court has blocked the start of this law and it is now unlikely to take effect before president-elect Donald Trump takes office.

Original Story:

PITTSBURGH (KDKA) - Do you get paid the same salary regardless of whether you work 40, 50 or 60 hours a week? Well, that may soon change.

Millions of Americans could see a boost in their pay next month. A regulatory change will make more Americans eligible for overtime, even if they are a salaried employee.

Some 4.2 million American workers, including 200,000 Pennsylvanians, will become eligible for overtime on Dec. 1, thanks to a new U.S. Labor Department regulation.

"A lot of people have been called managers or classified as exempt, and now they're going to be covered by this change that is going on," said Professor Jim Craft, of the University of Pittsburgh's Katz Business School

On Dec. 1, almost every worker who is paid under $47,476 will be entitled to time-and-a-half pay if their boss makes them work more than 40 hours a week, including salaried workers regardless of job duties.

That's double the current threshold of $23,660 set by the Bush administration in 2004.

Craft says some companies may opt to raise managers' pay above the new $47,000 threshold to avoid paying overtime.

"You can work 50, 60 hours a week and you won't be paid for the extra time beyond what your salary indicates," says Craft.

Other options for companies - layoff some employees now eligible for overtime.

"Employers might lay off junior employees who fall in that category of being overtime, and hire in senior employees who are more productive at the level, so we could have a replacement," Craft said.

But the easiest thing for employers to do is to make sure employees do not work more than 40 hours a week.

The Obama Administration says it's not right for employers to give mid-level workers a title and a salary just to avoid paying overtime, but it happens.

"That's correct, and it's not uncommon to have that happen, as a matter of fact," said Craft.

While the Trump Administration could try to change this, Craft says it's unlikely.

"He's got a big agenda in terms of other things, and this is not one of the key things he's focusing on. So, I think this is going to stay," Craft said.

The new rules are part of the Fair Labor Standards Act. For more information:

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