William Boznos Presents Overtime Changes Seminar
On Friday February 19, 2016, William Boznos spoke to the DuPage County Bar Association regarding overtime violations.
The presentation was attended by over 40 attorneys and other interested business professionals. Timely topics included the proposed changes to the salary thresholds associated with minimum wage and overtime obligations that will impact all employees. Currently, if an employee makes $455/per week, they are automatically qualified to receive overtime pay for every hour worked (or portion thereof) over 40 in a single workweek.
The new Department of Labor Regulations (which haven’t yet become official yet) will dramatically change this equation. Under the proposed regulations, the salary threshold will change from a fixed dollar amount ($455/week) to a percentage of national salary figures. The most current figure being bandied about is a 40% of national salary figures. This number may be indexed every year depending on wage data available. Currently, only wage data for 2013 is available, but even under that scenario, it is estimated that the salary threshold will climb to at least $47,500 per year. That means, if an employee’s base salary falls below $47,500 per year, they will AUTOMATICALLY qualify for overtime, regardless of their job duties and responsibilities. This will have a major impact on business. There is even talk about regionalizing the salary wage data. What the regions will be has not been fully fleshed out as of yet. Wages in the northeastern part of the country may be dramatically different from those in the midwest or southwest. We will have to wait and see.
The Regulations have not yet been made final. There have been over 270,000 comments made about the proposed regulations, which is about three times the number of comments normally made regarding proposed regulations. Business and employees alike are keenly attuned to this issue. It is expected however, that by this summer, the Department of Labor will finalize the regulations. Once they are in a final form, Boznos Law will keep you advised.