Media Coverage
Source: Current
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
10.14.16
On Dec. 1, 2016, the number of Americans eligible for overtime pay will drastically increase due to changes in the Fair Labor Standards Act (FLSA), which sets the requirements for the national minimum wage and minimum salary eligibility for overtime.
As of now, Americans making at least $23,660 per year can be exempt from overtime pay, but the new rules will increase that threshold to $47,476. According to public media news outlet Current, the change could have a major impact on industries like broadcasting, where overtime is common and the average salary is between $20,000 and $50,000. And in the wake of the change, employers may be likely to lower base salaries, forcing employees to work their expected weekly overtime in order to secure their old base salaries.
“This is a very big change,” said Employment counsel Rebecca Carr Rizzo, who spoke about the new rules in Current’s “The Pub” podcast. “The required salary thresholds to meet those exceptions are more than doubling.”
Listen to the full episode of “The Pub” for more commentary on how the new overtime rules could affect the broadcasting sector.