Last week, a Texas federal judge temporarily blocked the federal Department of Labor’s proposed overtime regulation that would have increased the number of employees eligible for overtime pay by increasing the salary level for the “white collar” exemptions to $47,476 per year.

Under the FLSA, employees must be paid time and a half of the employee’s regular hourly rate for each hour worked over 40 hours a week, unless the employee falls within an exemption from overtime by meeting the criteria for salary and duties.  As it stands, to qualify for a white collar exemption, the employee must meet the minimum salary level of $455 per week or $23,660 per year.  The proposed regulation would have doubled that minimum salary level, allowing fewer employees to be exempt. The regulation would have also raised the salary used for “Highly Compensated Employees” from the current threshold of $100,000 to the 90th percentile of average weekly salaried earnings – about $122,000.

Continue Reading DOL’s New Overtime Regulation Will NOT Go in to Effect on December 1

On May 18, 2016, President Obama and Labor Secretary Perez announced the publication of the final rule updating the overtime pay protections. The Department says that the new rule “will automatically extend overtime pay protections to over 4 million workers within the first year of implementation.” The new threshold is $47,476. The rule is effective on December 1, 2016.

Continue Reading New Wage & Hour Salary Threshold for Exempt Positions ANNOUNCED

Millions of additional Americans will become eligible for overtime pay under a new rule expected to be promulgated by the Labor Department any day now.

Currently, management, administrative and professional employees earning more than $23,660 a year are exempt from receiving overtime pay no matter how many hours a week that they work. Non-exempt employees must be paid time and one-half for all hours over forty worked in any given week. The rule proposed by Labor last summer would raise that threshold to $50,440.  However, it is anticipated that when the final rule is promulgated, likely this week, the threshold will be in the $47,000 range.

Continue Reading New Wage & Hour Salary Threshold for Exempt Positions Imminent