The wage threshold is the minimal wage that an worker should be paid to be able to be exempt from additional time pay. The wage threshold was set at $23,660 in 2004 and has not been up to date since then. In consequence, many staff who’re presently categorised as exempt are literally eligible for additional 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 additional time pay. The proposed replace has been met with combined reactions. Some companies help the replace, arguing that it’s going to assist to make sure that staff are paid pretty. Others oppose the replace, arguing that it will likely be too expensive for companies.