A new federal law goes into effect on Dec. 1 that could potentially affect millions of workers across the U.S., KTLA sister station WXIN reported. Businesses have been scrambling to prepare for the onset of the Fair Labor Standards Act, which changes the threshold for overtime pay to $47,500. Salaried workers who make less than that are eligible for overtime pay when they work more than 40 hours in a week.
As the rules currently work, companies can avoid paying overtime to full-time salaried employees making as little as $23,660 by classifying them as “exempt.” Those workers aren’t entitled to overtime pay even if they work more than 40 hours a week. The law that goes into effect on Dec. 1 changes that. The White House said the 40-hour workweek has eroded over the years, with workers putting in more hours without being compensated for them. READ MORE