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New Overtime Rules to Take Effect in January 2020

Working Woman

Overtime pay for workweeks involving more than 40 hours of work is just one of the protections the law provides to prevent the exploitation of working people.  The Department of Labor revises its policies periodically to reflect the changes in the economy, and the overtime pay regulations are no exception to this principle.  On September 24, 2019, the U.S. Department of Labor issued an update to the Fair Labor Standards Act (FLSA).  These changes, which will go into effect on January 1, 2020, increase the number of American workers who will become eligible for overtime pay and will also give added flexibility to employers regarding how they dispense the overtime pay to the employees entitled to receive it.  If you want to be sure that you are meeting your FLSA requirements in your business, or if you are an employee who thinks your employer is not paying you fairly, contact Brian J. Markovitz a labor and employment lawyer at JGL Law.

How Overtime Pay Works

According to federal law, salaried employees must receive overtime pay equivalent to 1.5 times their hourly rate for every hour in excess of the fortieth that they work in any given 7-day period.  A salaried employee is someone whose pay is a set amount per a certain period of time (for example, per hour or per month).  Salaried employees do not receive overtime pay. Often, salaried employees are considered certain “highly compensated employees” (HCEs) do not receive overtime pay, as it is assumed that their high salaries and other prerequisites of their jobs are already sufficient compensation for long work hours

The New Regulations

The new regulations, which will apply beginning on January 1, 2020, raise both the amount counted as the standard salary level and the amount of pay one must receive to count as an HCE.  These changes reflect the overall increase in salaries across the country, as salaries should increase to keep up with inflation.  According to the new regulations, the new standard salary level will be $684 per week, compared to the old standard salary level of $455 per week.  $684 per week is approximately an annual income of $35,568.  The new regulation raises the threshold for the HCE designation from $100,000 to $107,432 per year.  The standard salary level and HCE level will be lower in U.S. territories where wages are lower.  The Department of Labor has also resolved to update the regulations more frequently to reflect ongoing changes in the economy.

Contact Brian J. Markovitz at JGL Law about Labor and Employment Cases

You have the right to receive overtime compensation if you work more than 40 hours per week.  Joseph, Greenwald, and Laake offers legal representation to people whose overtime pay has been withheld. Contact Brian J. Markovitz in Greenbelt, Maryland to exercise your right to fair pay for your work.

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