Department of Labor’s New Overtime Rules Benefits Workers

The U.S. Department of Labor recently restored and extended overtime rules for lower-paid and salaried workers. It has traditionally been a foregone conclusion that workers who work more than 40 hours a week are paid time and a half by their employers. Under the Fair Labor Standards Act (FLSA), a worker who works more than 40 hours a week or 8 hours in a day is entitled to get paid more.

Protecting overtime for employees has been a critical aspect of the FLSA since 1938. The rule was established to protect workers from exploitation and benefit workers, their families, and their communities. Overtime protections helped to build and sustain America’s middle class and ensure that workers are not underpaid for the amount of work they do.

However, the law makes for some exceptions to the overtime rule. Some workers are exempt from the FLSA’s minimum wage and overtime protections. These include bona fide executives and administrative or professional employees. This exemption is traditionally referred to as the “EAP” exemption. It applies when:

• An employee is paid a salary
• The salary is not less than a minimum salary threshold amount
• The employee primarily performs executive, administrative, or professional duties

In the past, the FLSA has increased the minimum salary required for the EAP exemption from overtime pay every 5 to 9 years between 1938 and 1975. However, since 1975, long periods have passed without the minimum salary requirement being raised. This has caused problems for American workers and made it easier for companies to claim a position is administrative when it really isn’t, and thus get around having to pay overtime.

Analyzing the new rule 

According to the FLSA, the department’s new overtime rule was developed based on almost 30 listening sessions across the country. The final rule was issued after reviewing over 33,000 written comments. The FLSA heard from a wide variety of members of the public who shared their insights to develop the new overtime rule.

The new rule will increase the standard salary level that defines which salaried workers are entitled to overtime pay. Those who earn less than $844 per week are still entitled to get overtime pay. The new rule will go into effect on July 1, 2024.

Further, on January 1, 2025, most salaried workers who make less than $1,128 per week will become eligible to receive overtime pay.

The new rule will also increase the total annual compensation requirement for highly compensated employees who are not entitled to overtime pay under the FLSA from $107,432 to $132,964 per year on July 1. In January, that number will increase to $151,164.

The new rules also set forth the requirement to update the earnings thresholds every three years so that they keep pace with changes in worker salaries.

Talk to a Tampa, FL Employment Rights Attorney Today 

Florin Gray Bouzas Owens, LLC represents the interests of Tampa, FL employees in lawsuits against their employers. Call our Tampa employment lawyers today to schedule a free consultation, and we can begin discussing your case right away.

Source:

blog.dol.gov/2024/04/23/what-the-new-overtime-rule-means-for-workers