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Proposed Rules To Increase Number of Workers Entitled To Overtime Pay

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 Bala Wilson Mew LLP for an immediate case evaluation.

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