Published July 7, 2015

Whitehouse To Increase Overtime Pay

The annual salary threshold is currently $23,660, this determines eligibility for overtime compensation. President Obama said that he intends to change this salary threshold to $50,4400, a proposed rule change that is subject to comment from any and all sources. This move will most likely increase the number of foodservice managers who qualify for time-and-a-half pay when they work more than 40 hours per week and he also stated that five million managers will likely see their take home rise as a result as “a hard day’s work deserves a fair day’s pay. That’s at the heart of what it means to be middle class America.” It was not specified when the new threshold would go into effect, but already there has been concerns voiced. Angelo Amador, the National Restaurant Association’s SVP of labor and workforce policy and regulatory counsel said in a statement “while we are still reviewing the Department of Labor’s proposed overtime regulations, at first sign, it seems as if these proposed rules have the potential to radically change industry standards and negatively impact our workforce. As with previous policies put forth by this Administration, we are deeply concerned with the outcome this process will have on the employer community and our employees.”

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