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How might your employer respond to overtime rule change?

Our previous employment law blog post began a discussion about how the upcoming overtime pay rule could change your income specifically. This post continues the conversation, which comes with warnings and the possibility of good news. 

As our past post warned in our first basic point of advice, your employer could choose to give you the minimum pay bump needed to put your annual pay above the new legal threshold of $47,476.00. If your pay gets there, then you would no longer be eligible to receive the overtime rate for hours worked over 40.

Depending on how much overtime you worked and how you felt about that time away from home, this possible employer tactic could be considered good news. Maybe you like the pay bump and wouldn't feel compelled to work as many hours because of it. 

2.) Bye-bye overtime? Some employers might simply stop offering or allowing you to work more than 40 hours a week. They might seek the extra help from new hires or contract workers or spread the work through the team differently. The required overtime rate could be something that your employer can no longer or doesn't want to pay for. 

If you were relying on working the extra hours, then your employer electing this option could be a financial hit for you and your family. You would, however, have more time to either devote to your personal life or to tinker with other ways to earn some extra money. 

 

What do you think your employer might do in response to the new overtime pay rules? How might your financial security and work be impacted? Our next post will be the final in this series about possible outcomes of the overtime change come this December. 

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