Will New Federal Overtime Rules Affect Your State?

If you pay in one of the 18 states that has no general overtime pay provision of its own, you may be affected by President Obama’s proposed changes to overtime legislation.  Aimed at FLSA’s exemption for white-collar employees who have typically been considered exempt from overtime, these changes will require that overtime be paid to salaried employees making less than certain amounts.

These 18 states with no overtime pay regulations at the state level follow the federal overtime pay regulations.  Therefore, if the federal overtime regulations change, these states must comply.  There are also 13 other states and the District of Columbia that rely in part on the federal overtime regulations for overtime pay.

In response to the proposed federal changes, several states have already initiated changes to their overtime pay provisions.  California and New York have both introduced new thresholds for salaried workers; salaried workers earning less than the proposed thresholds cannot be denied overtime pay.

Whether your state has its own overtime pay rules or whether it follows the federal rules, you should be aware that changes may be coming soon! Need more help staying up to date on overtime and other payroll processing guidelines? Watch a free demo of Optimum’s Payroll Software by filling out the form to the right.

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