Overtime Exemption to Be Revisited

The Trump administration is set to revisit the overtime exemption rule in the upcoming months, according to the regulatory agenda. This rule has been in flux in recent years. The Obama administration had raised the salary threshold to be considered exempt to $47,500/year,  thereby significantly increasing the pool of workers who may be entitled to overtime pay. However, implementation of the rule was blocked by a Texas District Court.

Currently, the “white collar” exemption set forth in the Fair Labor Standards Act (FLSA) provides that in order to be considered exempt, a worker must earn a minimum of $455 per week, in addition to performing certain exempt duties. If you are considered exempt, then you are not entitled to overtime pay, regardless of the number of hours worked. On the other hand, non-exempt workers are required to be paid at a rate of one and one-half their standard rate of pay for all hours worked in excess of 40 in any workweek. The Trump administration is expected to raise the salary threshold, but likely not to the level suggested by President Obama.

For more information, or if you have any wage and hour questions, please contact the experienced Atlanta overtime law attorneys at Buckley Bala Wilson Mew LLP for an immediate case evaluation.