New Overtime Regulations Announced

DOL SealThe following is a guest blog courtesy of Blethen|Berens.

The U.S. Department of Labor (DOL) recently announced a final rule making more American workers eligible for overtime pay under the Fair Labor Standards Act (FLSA). The current salary thresholds were set in 2004. Previously, in 2016, the DOL announced a final rule, significantly increasing the overtime thresholds for the “white collar” exemptions, which was to be effective December 1 of that year. This proposed change was halted by the Courts before it took effect. Then, after a change in White House administration, in July, 2017, the Department of Labor abandoned the proposed final rule from 2016 and started over with a new process of reviewing and proposing changes to the overtime rules. The resulting final rule, which will go into effect on January 1, 2020, provides an increased threshold salary for the white collar exemptions, but the increase is much lower than the previously proposed rule from 2016. Continue reading “New Overtime Regulations Announced”

Must Read: New Overtime Rules

DOL Seal.pngToday the U.S. Department of Labor will finalize changes to rules on overtime pay for exempt “white collar” salaried workers.

Currently, the salary threshold for overtime eligibility for exempt “white collar” salaried workers is $23,660 per year ($455/week). The new rule will require overtime pay for those employees who makes less than $47,476 per year ($913/week), meaning that the employee must be paid  time and a half for hours worked over 40 each week. The Department of Labor states this will cover 4.2 million more employees, totaling about 35% of salaried workers.

This means that any exempt “white collar” salaried employee earning less than the new threshold amount of $47,476 per year must be paid overtime for all hours over 40 in a week, effective December 1, 2016. Continue reading “Must Read: New Overtime Rules”