Overtime Changes

On July 6, 2015, the Department of Labor published a proposed change to the rules governing the overtime law which could make nearly five million workers eligible for overtime pay. The Fair Labor Standards Act has always excluded salaried workers who perform managerial or administrative duties from overtime pay so long as their salary met a minimum specified amount. That minimum amount has been set at $455 per week (or $23,660 annually) since 2004. The new rule raises the minimum threshold amount to $970 per week (or $50,440 annually). In other words, the new rule would require employers to pay salary workers either $50,440 per year or overtime compensation for any hours worked in excess of forty (40) hours per week. The Department of Labor will be reviewing comments to the proposed rule for the next sixty (60) days. As a result, the new rule would most likely go into effect in 2016.

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