Overtime Pay Gets Even More Complicated

06 May Overtime Pay Gets Even More Complicated

The White House is currently conducting an assessment of the overtime rules in the Fair Labor Standards Act. Changes Expected.

There are many different avenues employers navigate in order to not pay an employee overtime rates; this leaves some employees feeling as though they’re jumping through hoops to try and get what they feel is rightfully theirs. The White House is currently conducting an assessment of the overtime rules that are in the Fair Labor Standards Act. This assessment will likely make those regulations even more stringent.

President Obama has recently signed an executive order that tells the Secretary of Labor to update portions of the FLSA regarding the qualifications for overtime protection. The announcement was made on March 13^th, but it is not known at the present time what the final changes might be. The order does not include any directives for a new salary threshold and does not go into effect immediately (according to an article in the New York Times). However, it is believed the executive order will cause an increase in the highest salary a white collar employee can earn and still remain eligible for overtime pay.

The Difference Between Exempt and Non-Exempt

It is necessary to distinguish between exempt and non-exempt employees. Non-exempt employees are those who are not exempt from the regulations within the FLSA. Those who are non-exempt must follow these regulations while exempt employees are not required to follow the rules that govern the FLSA. Usually, non-exempt employees are the wage and hourly employees while exempt employees are salaried. The FLSA requires most non-exempt employees to receive overtime pay during any week when they work more than 40 hours.

While not all employees fall under the overtime protection offered under the FLSA, the Department of Labor has a list of the categories of employees who fall outside of those regulations. Many of these exempt employees fall into the category of executive, professional, outside sales, and administrative employees. They are usually referred to as white collar workers.

Overtime Pay and Salaried Workers

The recent announcement by the White House includes directives for the pay threshold controlling the limit for white collar workers to receive overtime pay. The Department of Labor set the threshold at $250 in 1975. What this means is any white collar worker who earned less than that amount was entitled to receive overtime pay. The threshold was change to $455 in 2004, and most expect the limit will soon be increased again. Several news outlets have speculated on how high those limits might increase, and a recent report from Reuters included the latest details of future plans as presented by the labor secretary. Several states have already made the decision to increase the threshold for white collar workers.

Failure to Pay Overtime

In today’s technology-driven world, it’s kind of unusual for employers to fail to pay overtime. Most computer systems have the ability to combine data from time and attendance, combine them with payroll and incorporate them in real time in order to present one, current view. With federal and state governments focusing more intently on overtime pay, it is necessary for employers to maintain the best technology in order to avoid any potential problems. If you ever experience unprofessional treatment or face issues related to overtime pay, an employment lawyer can help with proving an employer’s unprofessional treatment and offer guidance on legal remedies to protect your rights and address workplace concerns.

If you are having problems receiving overtime pay to which you are entitled, a law firm or professionals such as a workers comp attorney can help you address this issue. You may also consider consulting with a professional corporate law practitioner to learn more about corporate laws.