Currently, employers are not required to pay overtime to certain managers and administrators if they work over 40 hours a week, as long as the employers classify these managers and administrators as salaried employees, and as long as these managers and administrators make more than $23,660 per year - about $455 per week.
That is likely all about to change, though. The Obama Administration is proposing a rule that would more than double that wage floor to $50,444. In other words, any employee currently classified as a manager or administrator and being paid on salary (exempt from overtime), would now need to be paid a minimum of $50,444 a year in order to remain classified as salaried.
Any manager or administrator on salary earning less than $50,444 a year would be required to be recategorized as non-exempt, meaning that employers would be required to pay overtime to those employees for anything over 40 hours per week.
Recommended For You
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
