Department of Labor Overtime Ruling
What’s the Verdict?
Federal Judge Issues Nationwide Injunction against New Overtime Rule
Just 10 days before the implementation date, a federal judge has issued a nationwide injunction blocking the Department of Labor’s (DOL) rule requiring overtime pay for more than 4 million new employees. These new regulations were to become effective on December 1, 2016.
Under the current regulations, employees can be exempt from overtime if they make more than $455 per week, or $23,660 per year. As outlined in DOL’s new overtime regulations, the salary necessary for exemption increased to $47,476 per year. This means if you were to make less than $47,476 you could be eligible for overtime pay. Unfortunately, the new regulations are on hold as they are being considered by the court.
What You May Not Know About Overtime
Overtime pay is a complex area of law involving a three-part test for whether an employee may qualify for overtime; however, the law is written to advantage employees. In order for an employer to not pay overtime, the employee must meet ALL three parts of the test. Thus, more people could qualify for overtime pay than know it.
1. True or False: Salaried employees don’t qualify for overtime? FALSE! Whether an employee should be paid overtime does not depend solely only on whether they receive a salary. This is just the first part of the test.
2. True or False: If you were misclassified as exempt, you may have a case? TRUE! Misclassification is a common mistake by employers. Call us today to determine whether you’ve been misclassified!
3. True or False: If this did not happen recently, you are unable to file a case? FALSE! In some cases, an employee can go back as far as 6 years to collect overtime.
Employers who violate the Fair Labor Standards Act can be subject to paying the employee:
1. The overtime amount owed;
2. A “penalty” equal to the amount owed; AND
3. The employee’s attorney’s fees.
We’ve successfully handled employment cases in various parts of the country. Our lawyers are recognized as Super Lawyers, Best Lawyers in America, Top 40 Under 40, and The American Institute of Legal Counsel as 10 Best Legal Counsel for Client Satisfaction in labor and employment.
Until the new law takes effect, if you make less than $23,660 per year and do not receive overtime or have questions related to the current status of the new overtime rule, call us today for a free consultation.