Earlier this summer, the Department of Labor issue new regulations which,
if adopted, have the potential to significantly impact “white collar”
workers and their ability to obtain overtime compensation. The proposed
rules are open for public comment until September 4th, so everyone is
encouraged to make their voices heard.
Currently, the Fair Labor Standards Act provides that all “non-exempt”
workers are entitled to be paid overtime compensation at a rate of one
and one-half times their standard rate of pay for all hours worked in
excess of 40 hours in any work week. “Exempt” workers are
those who meet certain criteria – as is defined by the law as “administrative,
executive or professional”
and make at least $455/week. The effect of the $455 threshhold has been to
deny milliions of workers who would otherwise be entitled to overtime
pay the opportunity to recover this additional compensation. Because exempt
workers are not entitled to overtime pay, regardless of the number of
hours worked, the amount of pay can be substantial.
The proposed regulations seek to raise this amount to $921 per week, which
would more than double the current threshold. the rules become final,
the salary level is estimated to be set at $970 per week, or $50,440 per
year for 2016.
According to the DOL, roughly 4.6 million workers would no longer be considered
exempt and hence, be entitled to overtime pay.
For more information, or If you have questions about the FLSA or any other
wage and hour issue, please contact the dedicated
Atlanta wage and hour lawyers at Buckley Beal, LLP for an immediate consultation.