In 2014, President Obama asked the Department of Labor to review the rules related to overtime pay and modernize them to reflect current economic realities. He also wanted the overtime rules to be easier to understand. The Department of Labor did so and made changes to the Fair Labor Standards Act (FLSA) that will increase the wages of middle class earners. Over four million employees will be affected by the changes, which require employers to pay their salaried employees at least $913 per week or pay overtime at a rate of 1.5 times their hourly rate for all hours worked over 40 in a workweek. The new rules take effect on December 1, 2016.
If you are an employee earning less than $913 per week and you are not currently paid overtime, your employer will have two choices beginning December 1: it can increase your pay to at least $913 per week or it can pay you overtime. If your employer chooses to pay you overtime, you may have to start keeping track of the hours you work using a time clock or some other technology.
If your employer continues to pay you less than $913 per week after December 1, and also refuses to pay you overtime pay for hours worked over 40, please call us to discuss your situation. In these types of cases, the law allows you to recover your unpaid wages. You may also recover additional monetary damages called “liquidated damages” and the attorney fees and costs expended in the litigation.