Several US States are addressing the area of overtime hours in a bid to make up for shortcomings in the US Labor Department’s proposal (c.f. article No. 11037). Washington, Pennsylvania, and California are among those also studying raising annual income floors, above which employers do not pay for overtime hours. Raising the income floor will enable millions of employees to receive bigger pay packets. Once these workers earn below the floor level and work more than 40 hours per week they will be able to earn 1.5 times the hourly tariff in overtime pay.
The current system is regulated by the Fair Labor Standards Act of 1938 that determines overtime pay in terms of the amount and the nature of the work. In line with their set of responsibilities and their levels of autonomy, senior level workers and certain professions do not qualify for overtime pay, and so these workers can work 45 or even 50 hours a week without earning any overtime pay. The problem with this system is that the floor amount that is linked to their hierarchical level and...
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