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Implementation of new overtime rule delayed

Many workers in the Houston area are able to increase the size of their paychecks by working overtime hours. Federal wage and hour laws require employers to pay workers one and one-half times their regular hourly pay for all working hours that exceed 40 hours for one week. However, there are some exceptions to the overtime pay rule for certain white-collar workers.

Currently, white-collar workers are exempt from overtime pay if they make at least $455 per week. However, earlier in 2016 the Department of Labor updated the Fair Labor Standards Act and raised the salary threshold for overtime-exempt workers to $913 per week. The final rule has not yet been implemented.

The final rule about white-collar exemptions was supposed to be implemented on Dec. 1 of this year. However, employers might be getting a six-month reprieve, as the U.S. House of Representatives has passed the Regulatory Relief for Small Businesses, Schools and Nonprofits Act. The act would push implementation of the final rule to June 1, 2017. However, employers may still have to change their overtime payments in December, as the Obama administration has stated that it will veto the House bill to prevent the six-month delay.

Overtime pay can add up to a lot of money, and unfortunately many employers try to skirt laws that require payment. Employees who believe that they have been the victims of these types of Fair Labor Standards Act may want to meet with an attorney to see what rights they may have under federal law and how to assert them.

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Warren & Siurek, L.L.P.
3334 Richmond Avenue, Suite 100
Houston, TX 77098

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