The wage threshold is the minimal wage that an worker have to be paid so as to be exempt from extra time pay. The wage threshold was set at $23,660 in 2004 and has not been up to date since then. Consequently, many staff who’re presently categorized as exempt are literally eligible for extra time pay.
The Division of Labor has proposed updating the wage threshold to $50,440. This replace would make greater than 1 million staff eligible for extra time pay. The proposed replace has been met with combined reactions. Some companies help the replace, arguing that it’ll assist to make sure that staff are paid pretty. Others oppose the replace, arguing that will probably be too pricey for companies.