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Are You Entitled To Overtime Pay?

With the new year upon, reforms to the Fair Labor Standard Act (FLSA) are expected. Last March President Obama signed a memo directing the Department of Labor to address certain provisions of the federal law. One of these provisions concerns the salary threshold for overtime.

Currently, the FLSA provides that all non-exempt employees who put in more than 40 hours in any workweek receive overtime pay 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 one workweek. Whether a worker qualifies as “exempt” v. “non-exempt” depends on a variety of factors, and whether you are paid on a salary basis in an amount not less than $455/week.

Such threshold is low and translates into $23,660 per year. As a result, if you are a salaried employee and earn more than this amount, you may be considered “exempt” and not be able to earn the overtime pay you deserve. The threshold was originally intended so that higher level executives did not receive overtime pay, however the threshold has not been adjusted. As such, only 11 percent of salaried workers currently receive overtime as opposed to the 65 percent who did in 1975, when the law was enacted.

Many experts believe that this threshold will be raised in February of this year.

For more information about the Fair Labor Standards Act or how any changes may impact you, please contact the top Atlanta wage and hour lawyers at Buckley Bala Wilson Mew LLP for an immediate case evaluation.

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