New York Times July 1, 2015
Under current rules, salaried workers are not eligible for overtime if they earn enough to qualify as executives, professionals or administrators. The proposal would raise the salary threshold that defines those positions.
Today, employees can be considered part of the top ranks — and generally ineligible for overtime — once their salary reaches a paltry $455 a week, or $23,660 a year. The new threshold in 2016 would be $970 a week, or $50,440 a year, about where it would be if it had kept pace with inflation over the decades. At or below that level, salaried workers are automatically eligible for overtime. (The current rules for hourly workers would remain intact.)
The above simply is not true. There is no part of the law that defines “executive ” by salary alone. To be exempt from overtime a worker must exceed the salary requirement AND must also be employed in a job with actual duties meeting requirements of the FLSA. So, to be in compliance with the law an employer cannot simply raise pay, but must also assure the worker is performing exempt duties on the job and you can’t simply call a janitor an executive assistant to accomplish that. An employer cannot deny a worker overtime pay solely because she earns $500 a week‼️
Clearly the current salary level is too low, but why mislead people? How many executives or professional do you know who earn $23,000 a year?
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