The White House is expected to order the Labor Department this week to expand overtime pay protection to millions of salaried workers.

Businesses are currently required to pay overtime to certain salaried workers who work more than 40 hours per week, but only if they earn less than $455 per week (approximately $24,000 per year). The new directive will raise this threshold, possibly as high as $984 per week (approximately $50,000 per year), although a lower number may be chosen.

If the overtime threshold were raised to $984 per week as many as ten million salaried workers would be affected. They would soon start to receive time and half pay for hours worked in excess of 40 hours per week. Hourly workers are already protected by overtime laws.

The new standards are aimed at helping certain categories of salaried workers who are currently classified as “executive or professional” employees. Examples include convenience store managers, fast food shift supervisors, and office workers.

We will continue to monitor this situation and its effect on business payrolls across the country. For additional information on this and other compensation issues, please contact Gray, Gray & Gray at (781) 407-0300.