December 1, 2016 was supposed to be a great day for an estimated 156,000 salaried workers in North Carolina. But thanks to a recent federal court order, yesterday instead brought disappointment and confusion for most of them.
For nearly seven months, thousands of North Carolinians have been anticipating an increase in their pay due to the Obama Administration’s new overtime rule for salaried workers. The rule, which was announced on May 18, 2016 and set to take effect yesterday, would have raised the salary threshold for overtime eligibility from $23,660 per year to $47,476 per year, effectively raising the amount you must be paid in order for your employer not to have to pay you overtime. That means that *most* workers making less than $47,476 per year (or $913 per week) would have to be paid overtime for each hour over 40 in one workweek in addition to their salary. (This rule only changes one of the exemptions from overtime and does not apply in all workplaces and to all types of jobs. It has to do with what are often referred to as white-collar jobs, or the Executive, Administrative, Professional exemption.) The new rule also includes a mechanism to automatically update the salary threshold every three years.