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Newspaper
New Castle News
Location
New Castle, Pennsylvania, United States of America
Date
Jun 15, 2016
Page
14
The Department of Labor updates overtime rules, raising the exempt salary test from 455 a week to 913 a week or 47 476 a year, effective December 1. About 4.2 million workers previously exempt will lose that status, affecting both employees and employers as firms weigh raises, reclassifications, or scheduling limits.
The article analyzes the financial impact of the Department of Labor overtime rule on workers like Dennis and their employers. It discusses costs of raising salaries to avoid overtime status, potential reallocation of talent, and broader economic effects, noting firms may adapt by changing classifications or wages. It cites examples and theory, arguing flexibility could lift wages and influence productivity.
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