Companies are considering the impact of a possible increase in the overtime pay threshold ($50,440) on employment costs. Upon implementation, many more employees will become eligible for overtime pay. Annual Salary Number of Employees 125 370 694 520 730 210 $38,000 $39,140 $41,800 $43,700 $51,300 $55,100 Proposed Pay Increase-Year 1 (%) 0.65% 0.65% 0.65% 0.65% 0.65% 0.65% Proposed Pay Increase-Year 2 (%) 2.55% 2.55% 2.55% 2.55% 2.55% 2.55% Under the new overtime pay threshold, employees will be eligible for overtime pay after the year 1 pay increase