Back in 2015, we told you that the U.S. Department of Labor had released its proposed amendments to the Fair Labor Standards Act's ("FLSA") salary threshold for overtime-exempt employees. Yesterday, the Labor Department announced that its final regulation will double the current salary requirement from $23,660 ($455/week) to $47,476 ($910/week).
This is significant news for middle class Americans. The new regulation will guarantee overtime rights for those workers who earn less than $47,486 per year and were previously not eligible for overtime - an estimated 4.2 million employees. For those employees earning more than the salary requirement, their entitlement to overtime will depend on their job duties.
The rule-making change is seen by many as long overdue. In 1975, 62 percent of salaried workers had overtime rights while only 7 percent currently do. In an effort to prevent the law from once again failing to keep pace with inflation, the salary threshold will be indexed to the lowest income region in the county and will update automatically every three years.
This final rule takes effect on December 1, 2016.
The Nolan Law Office regularly represents salaried employees that should be receiving overtime. Contact us immediately for a free consultation regarding your rights under the federal and state overtime laws.
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