Overtime Wage Eligibility Expanded – How this change in the FLSA may benefit you


On May 17, 2016, the United States Labor Department announced a significant change in overtime regulations for salaried employees. The new rule makes many more salaried workers entitled to overtime. Under the new rule, if you are a salaried worker making less than $47,500 per year, you will be entitled to overtime for those hours you work over 40 in a work week, regardless of your duties. This means workers who are salaried managers, assistant managers, supervisors, administrators, or professionals making less than $47,500 can no longer be considered exempt that is, not entitled to overtime, even if they primarily perform managerial, administrative or professional duties.

The new rule goes into effect on December 1, 2016, and applies to all employers. This increase to $47,500 doubles the previous salary-level of $23,660, and means that about 35% of all salaried workers (those who earn less than $47,500) will now be automatically entitled to overtime and you may be one of them.

If you are classified as an exempt employee and are earning less than $47,500, this new rule will effect you. For more details, please contact Shavitz Law Group for assistance with ensuring that your rights to overtime pay are protected and enforced.