New Overtime Rule is Now in Effect

Are you actually entitled to receive overtime pay that you are not receiving? Even if you were considered an exempt employee in the past and as a result were ineligible for overtime pay, a new final rule from the US Department of Labor could make you eligible for overtime pay. That new rule took effect on July 1, 2024, and it will have further implications on January 1, 2025. What do you need to know if you are currently classified as an exempt employee who does not receive overtime? In short, your salary could place you below the threshold for exemption, and your employer may be required to pay you at a rate of 1.5 times your regular wage if you work beyond 40 hours in a workweek.

Our Palm Beach Gardens wage and hour law attorneys can explain in more detail, and we can assist you with a wage theft or overtime claim if you believe you are entitled to receive overtime pay that your employer has denied.

Details of the New Department of Labor Rule 

Earlier this year, the Wage and Hour Division of the US Department of Labor revised its rule for who can count as an exempt employee based on salary. This type of classification — as “exempt” or “nonexempt” — is a critical one for determining whether an employee is entitled to overtime pay because nonexempt employees must be paid for overtime while exempt employees are not eligible for overtime.

There are many ways in which an employee can be classified as “exempt,” but one way is a salary threshold for employees who fall within the category of “Executive, Administrative, Professional, Outside Sales, and Computer Employees.” In short, if your salary is below the threshold, then even if you work in one of these types of traditionally “exempt” positions, you are not actually exempt and must be paid overtime where appropriate. The previous salary threshold was extremely low, but the new rule raised the threshold to $43,888 annually (or $844 per week) as of July 1, 2024. That salary threshold will rise again, quite significantly, on January 1, 2025 to $58,656 annually (or $1,128 per week).

How Does Overtime Pay Work 

If you are no longer “exempt” based on your salary and the new Department of Labor rule, then your employer must pay you overtime under the federal Fair Labor Standards Act (FLSA). When is overtime pay required, and how much is your employer required to pay you?

Any nonexempt employee who works hours beyond a 40-hour workweek is entitled to receive overtime pay, which must be paid at 1.5 times the employee’s regular wage. For example, if you earn an annual salary of $41,600, or $800 per week, and you work a regular 40-hour workweek at 8 hours per day, 5 days per week, then you earn $20 per hour. If you work more than 40 hours in a workweek, your employer must pay you at 1.5 times your regular wage — or 1.5 times $20 per hour, totaling $30 per hour for any overtime hours worked.

Contact a Palm Beach Gardens Wage and Hour Lawyer 

If you believe you are entitled to overtime pay, you should get in touch with an experienced Palm Beach Gardens wage and hour law attorney at Sconzo Law Office as soon as possible. We are here to assist you with your claim and to help you receive the pay you are owed.

Source:

federalregister.gov/documents/2024/04/26/2024-08038/defining-and-delimiting-the-exemptions-for-executive-administrative-professional-outside-sales-and