Overtime Rule

"One of the basic principles of the American workplace is that a hard day’s work deserves a fair day’s pay. Simply put, every worker’s time has value. A cornerstone of that promise is the Fair Labor Standards Act’s (FLSA) requirement that when most workers work more than 40 hours in a week, they get paid more. The Department of Labor’s new overtime regulation is restoring and extending this promise for millions more lower-paid salaried workers in the U.S.

Overtime protections have been a critical part of the FLSA since 1938 and were established to protect workers from exploitation and to benefit workers, their families and our communities. Strong overtime protections help build America’s middle class and ensure that workers are not overworked and underpaid.

Some workers are specifically exempt from the FLSA’s minimum wage and overtime protections, including bona fide executive, administrative or professional employees. This exemption, typically referred to as the “EAP” exemption, applies when: 

1. An employee is paid a salary,  

2. The salary is not less than a minimum salary threshold amount, and 

3. The employee primarily performs executive, administrative or professional duties.

While the department increased the minimum salary required for the EAP exemption from overtime pay every 5 to 9 years between 1938 and 1975, long periods between increases to the salary requirement after 1975 have caused an erosion of the real value of the salary threshold, lessening its effectiveness in helping to identify exempt EAP employees.."
Overtime  

Overtime Pay Rules Were Implemented on January 1. Here’s What You Need to Know.

"The U.S. Department of Labor’s final rule making 1.3 million American workers newly eligible for overtime pay took effect on Jan. 1, 2020. Here’s what you need to know about the changes and where to find compliance assistance resources.

What’s new? The final rule updates the earnings thresholds necessary to exempt executive, administrative and professional employees from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime pay requirements, and allows employers to count a portion of certain bonuses/commissions towards meeting the salary level. Specifically:

• The “standard salary level” is now $684 per week (equivalent to $35,568 per year for a full-year worker).

• The total annual compensation requirement for “highly compensated employees” is now $107,432 per year.

• Employers are allowed to use nondiscretionary bonuses and incentive payments (including commissions) paid at least annually to satisfy up to 10% of the standard salary level, in recognition of evolving pay practices.

• The special salary levels for workers in U.S. territories and the motion picture industry have been updated..."
  Overtime pay

President Obama: I've Got News For You on Overtime

"President Obama wrote this message to petition signers to announce that the Department of Labor will be finalizing a rule that expands overtime pay to millions of American workers.

I wanted you to be the first to know about some important news on an issue I know you care deeply about: making sure you're paid fairly.

Tomorrow, we're strengthening our overtime pay rules to make sure millions of Americans' hard work is rewarded. If you work more than 40 hours a week, you should get paid for it or get extra time off to spend with your family and loved ones. It's one of most important steps we're taking to help grow middle-class wages and put $12 billion more dollars in the pockets of hardworking Americans over the next 10 years..."
Overtime rule