Changes in Overtime Pay Laws for Exempt Employees
After January 7, 2017, a salaried employee in Maine that is earning more than $47,476 a year, or is in a bona fide administrative, executive or professional position will be tax exempt. Such a change will also affect various miscellaneous employees that are not in a bona fide position. Obama’s administration’s raise on the threshold is double that of the previous threshold; which was $23,600. This drastic increase has affected more than 16,000 employees in the state of Maine – according to the Department of Labor.
Miscellaneous Exempt Employees
- Drivers that are compensated in other ways besides a wage based on hours of labor
- Employed students that are under the age of 19
- Employees that are working in non-profit and public-supported organizations
- Agricultural laborers, except laborers that are stationed in egg-processing facilities
- Salespeople paid by commission
- Children counselors in seasonal camps
Non-exempt Employees
Employees that are not in bona fide positions or do not earn more than $47,476 a year are classified as non-exempt employees. Non-exempt employees are protected by the Fair Labor Standards Act (FLSA) and state labor laws pertaining to overtime pay. Overtime laws require employers to pay such employees in the amount of one and a half times their regular hourly wage. Employees could only be compensated overtime pay if they worked more than 40 hours in a workweek.
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