New rules issued by the federal government could extend overtime pay eligibility to millions of workers. Right now, salaried workers with some managerial duties earning more than $23,660 can be denied overtime pay. Under the new rule, which takes effect in December, salaried workers will need to earn $47,500 before overtime pay can be denied.
After working 40 hours in any given week, overtime pay takes effect, paying eligible workers 1.5 times their normal pay rate for any additional hours worked. The changes are expected to affect many restaurant and retail managers, with some businesses predicting dire consequences.
In 1975, 62% of salaried workers were eligible for overtime. Today, only 7% are eligible. Under the new rules, 35% of workers will be eligible. The threshold for overtime pay eligibility will be adjusted every three years to match the 40th percentile of full-time salaries in the lowest income region of the country. Experts estimate the threshold will be around $51,000 in 2020.
For more information on the rule change, see the full news article here.
Perona, Langer, Beck and Harrison has seen some unscrupulous employers do whatever they can to avoid paying earned overtime to overworked employees. Many workers are incorrectly classified as managers in an attempt to prevent overtime pay, but the new rules will make it more difficult for employers to take advantage of salaried managerial workers.
California’s employment laws are a complex set of guidelines governing the relationships between employer and employee. These laws protect employees from being deprived of wages owed to them. Employees should know their rights and know how to protect themselves. If you or someone you know have been denied earned overtime pay, contact us today at (800) 435-7542 for a free, confidential consultation. Our dedicated employment law attorneys can help identify if you have a case. To find out more information about Wage and Hour laws, including overtime pay visit our website www.plbsm.com.