Earlier this summer, the Department of Labor issued new regulations that could have a significant impact on “white collar” workers and their eligibility for overtime compensation. The proposed rules are currently open for public comment until September 4th, and it is important for individuals to voice their opinions.
Under the current Fair Labor Standards Act, “non-exempt” workers are entitled to receive overtime pay at a rate of one and one-half times their regular rate of pay for all hours worked beyond 40 in a workweek. On the other hand, “exempt” workers are those who meet specific criteria defined by the law as “administrative, executive, or professional” and earn at least $455 per week. The $455 threshold has resulted in millions of workers being denied overtime pay that they would otherwise be entitled to receive. As exempt workers, they are not eligible for overtime pay, regardless of the number of hours they work, resulting in significant lost wages.
The proposed regulations aim to raise the salary threshold to $921 per week, more than doubling the current amount. Once the rules are finalized, the estimated salary level is expected to be set at $970 per week, or $50,440 per year for 2016.
According to the Department of Labor, approximately 4.6 million workers would no longer be considered exempt and would be entitled to overtime pay.
For more information or if you have any questions about the Fair Labor Standards Act (FLSA) or any other wage and hour issues, please contact the dedicated Atlanta wage and hour lawyers at Buckley Bala Wilson Mew LLP for an immediate case evaluation.