New rules for overtime might lead to wage and hour claims

On Behalf of | Oct 3, 2019 | Wage And Hour Claims |

Kentucky workers have long been concerned about overtime and when they will be eligible to receive it. One of the most common reasons for wage and hour claims is unpaid overtime and it is critical to understand the law when it comes to when there should be these extra wages paid.

The U.S. Department of Labor is in charge with the rules for when U.S. workers receive overtime and a recent ruling will grant overtime to as many as 1.3 million workers.

While this is a positive, employers could be negatively impacted and that could lead to a manipulation of hours and worker categorizations, resulting in disputes. The overtime change falls under the Fair Labor Standards Act. It will begin at the start of the new year. For those who are earning $684 per week, they will get overtime. This is a rise from the previous amount, $455 per week. Those who currently earn $23,700 get overtime. That amount was set in 2004. On Jan 1., that amount will be $35,568.

Prior to this change, the Obama administration had sought to raise the amount for workers to get overtime to $47,000. A judge in Texas blocked the attempt. Employees will assuredly benefit from this change if employers adhere to it without sleight of hand, but some believe it is not a high enough increase as the Obama proposal was. Employers might also benefit from the lower amount, but if there will be greater cost, there is the foundation to manipulate how workers are categorized from an hourly worker to a salaried worker to try and save money and either avoid overtime or to get workers to work longer hours for the same pay.

Wage and hour claims can be made for many reasons and overtime is a common one. Regardless of the situation at the workplace, workers are entitled to get what they are owed for the work they have done. When there is an issue, workers are shortchanged or there is other perceived wrongdoing with wages, a law firm that has experience in wage and hour claims might be able to help.

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