The Department of Labor issued new rules in May that update the Federal Fair Labor Standards Act, the law which guarantees a minimum wage and overtime pay for executive, administrative, professional, outside sales, and computer employees.
The new regulations, which will go into effect on December 1, 2016, increase the salary threshold indicating eligibility for overtime pay from $455 per week to $913 per week (or $47,476 per year for a full year employee). The Department of Labor says the new regulations will extend protections to 4.2 million workers across the country, including 185,000 in Pennsylvania and 132,000 in New Jersey.
There are several ways employers can respond to the changes. They can pay overtime as dictated by the new salary ranges; raise a salary to at or above the threshold to keep employees at an exempt status; or evaluate workload distribution to keep employees from needing to work overtime.
The lawyers at Leonard Sciolla can assist you with any and all employment matters, whether you are an employer or an employee. Call John Leonard or Paul Schultz at (215) 567-1530 or (856) 273-6679.
Published May 24, 2016