Santiago J. Padilla, P.A.

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New Wage and Hour Rule Now makes More Workers Eligible for Overtime Compensation

I am happy to report that today, the U.S. Department of Labor announced that a new overtime rule will go into effect on January 1, 2020 that will cover an additional 1.3 million U.S. workers.

Previously, certain workers that made at least $455 per week were exempt from application of the Fair Labor Standards Act's (FLSA) minimum wage and overtime pay requirements. That means that those workers would not receive overtime compensation for the hours that they worked over forty (40) per week. Under the new rule, the threshold amount to qualify as an exempt employee was raised to $684 per week, so that if the worker does not make at least $684 per week, then he or she will generally be entitled to receive overtime compensation if they work over 40 hours per week.  Overtime compensation is one and one-half times the employee's regular rate of pay.

 

So, let's say, for example, that a manager of a fast food restaurant is earning $500 per week and works 65 hours per week.  Under current law, that manager is not entitled to overtime compensation for the extra 25 hours over 40 per week that he or she works - he or she is exempt from receiving overtime compensation.  However, commencing on January 1, 2020, unless that manager is paid at least $684 per week, he or she must be paid overtime compensation for the 25 hours of overtime that he or she works per week.

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If you have any questions regarding wage and hour laws or any employment issues, please do not hesitate to contact me, Santiago J. Padilla, Esq., either at 800-483-7197, or [email protected]

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