New FLSA Rule To Give Over Four Million Workers the Right To Overtime Pay

The Fair Labor Standards Act (“FLSA”) sets the minimum wage, overtime pay, recordkeeping, and other standards for employment across the nation. Though states may expand those rights and provide greater protections for their citizens, the FLSA sets the baseline standard that all employers (both public and private) must adhere to.

On May 18, 2016, the Department of Labor finalized a long-awaited new FLSA rule which will increase the overtime pay protections for many workers who are classified as “white collar” exempt. Specifically, the new rule increases the minimum salary and compensation levels needed to classify Executive, Administrative, Professional, Outside Sales, and Computer employees as exempt by:

  • More than doubling the minimum salary cutoff for exemption from $23,660 annually (or $455 per week) to $47,476 annually (or $913 per week); and
  • Establishing an automatic raise in that minimum salary level every three years to account for inflation.

The new rule will go into effect on December 1, 2016 (with the first automatic raise scheduled for January 1, 2020) and will require employers to either increase current exempt employee salaries in order to maintain their exempt status or convert those employees to hourly workers covered by the overtime laws. It is estimated that the new rule will extend overtime pay protections to over four million workers within its first year of implementation.

For more information about your rights to overtime compensation, and a free case evaluation, please call us at (619) 342-8000 or contact us online.

SHARE

COMMENTS & DISCUSSIONS

Related Posts

Haeggquist & Eck Attorneys posing for picture

Haeggquist & Eck Work With Employment Boutique to Help Women in the Workplace

In this article by Law360 it’s outlined how Haeggquist & Eck have pushed forward for women in all areas of …

Read More
SDSU

Haeggquist & Eck’s Attorney Jenna Rangel and Survivor Advocate Christy Heiskala are featured in KPBS News Story

Haeggquist & Eck’s Attorney Jenna Rangel and Survivor Advocate Christy Heiskala are featured in KPBS news story regarding how outside …

Read More
In the News Banner

Haeggquist & Eck Represents Detectives in Sexual Harassment Suit Against San Diego County Sherriff’s Department

Haeggquist & Eck Partner, Jenna Rangel, is proudly representing two former San Diego Sherriff’s Department detectives in a Sexual Harassment …

Read More
Translate »