Last week, the U.S. Department of Labor ("DOL") issued a Notice of Proposed Rulemaking that would allow millions of additional workers to receive overtime compensation. In particular, under the current law, administrative employees that earn at least $455 per week are not entitled to overtime compensation. Section 12(a)(1) of the Fair Labor Standards Act of 1938 provides an exemption from both minimum wage and overtime pay for such employees.
However, under the new proposed rule, the salary to be classified as an administrative employee will be raised to $679 per week or $35,308 per year. Therefore, if the rule is finalized, then many more employees will be classified as nonexempt and entitled to overtime compensation.
The public will have 60 days within which to comment on the proposed rule once it is published in the Federal Register.
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If you have any questions regarding employment law or whether you are entitled to overtime compensation, please contact Santiago J. Padilla at 1-800-483-7197.