On Tuesday, President Obama announced its long awaited changes to the Fair Labor Standards Act (FLSA) which makes millions more American workers available for overtime pay.
The new regulation changes the salary threshold for being an “exempt” employee – and thus not eligible to earn overtime pay – from $23,660 to $47,476. By raising the salary exemption level, millions of American workers who were previously disqualified because they made more than $455/week – despite holding lower level salaried positions that should have entitled them to overtime pay based on their job duties – will now be eligible for overtime pay. In facts, estimates put this number at more than 4 million. These are workers who fit within the “executive, administrative or professional” classifications and make more than the current threshold but less than the new one. As such, millions of households across the United States may see an increase in income. Other workers will be allowed to work fewer hours, so that their employers aren’t required to pay overtime compensation. This rule will go into effect on December 1, 2016.
For more information about the updated FLSA law, or any other wage and hour question or concern, please contact the dedicated Georgia wage and hour lawyers at Buckley Beal, LLP for an immediate consultation.