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Administration's proposed rule on overtime pay challenging for small business

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...

By William Atkinson | Updated on August 10, 2015

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.

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