Changes to Overtime Rules
GET READY FOR CHANGES IN THE OVERTIME RULES COMING IN 2016
There are new overtime regulations coming that could significantly increase the amount of workers entitled to overtime pay in 2016 and beyond. The Department of Labor has announced that it will publish the final regulation affecting overtime pay in July of 2016.
Under the Federal Fair Labor Standards Act, (FLSA) as well as state acts, including the Illinois Minimum Wage Act, employers are required to pay overtime to workers who earn a certain threshold amount and are classified as “non-exempt”. Overtime must be paid at a rate of one and one half times the employee’s compensation for all hours worked in excess of 40 in a single work week. An employer may not average work weeks or combine workweeks.
The wage laws carry both a “salary test” as well as a “duties” test. Currently, employees earning $23,660 per year or $445 per week are generally entitled to overtime pay. (There are certain exemptions that apply, such as executive, administrative, professional and certain computer related duties which may allow an employer to avoid paying overtime). The proposed changes to the FLSA will dramatically increase the number of employees eligible for overtime pay by elevating the base salary level to approximately $50,400 per year or $970 per week. There will be other changes coming. For example, there is a salary level of highly compensated employees that is currently set at $100,000. Under the proposed changes, this level will rise to $120,000.
In the coming weeks, Boznos employment attorneys will be writing more about the anticipated changes and the impact that they will have on the workforce. In the meantime, employers as well as employees should be preparing for the anticipated changes. Litigation in the area of unpaid wages, including overtime violations, is one of the largest and swiftest growing areas in the employment field. With the possibility of punitive (i.e. double) damages, along with the payment of Plaintiffs’ attorney fees, all businesses and individual employees need to be aware of what is coming down the pike.
With over 30 years’ experience in advising employers and employees on workplace issues, let Boznos Law work with you to ensure you are ready to meet the challenges posed by the changes to the overtime laws. Call Bill Boznos today at (630) 375-1958 or contact us through our website at www.boznoslawoffice.com