Overtime pay has long been a problem for many employees. Some employers, unfortunately, require employees to work “off-the-clock” so that they don’t have to pay them time-and-a-half if they work more than 8 hours a day or 40 hours a week, for example.
Many employers used to get around paying lower-level supervisory workers overtime by making them salaried employees who were exempt from overtime pay. Laws have changed over the years so that no matter what their position or job title, employees earning a salary under a designated amount (or threshold) are still entitled to overtime pay when they work extended hours. However, these changes haven’t always kept up with the times.
Increasing the salary threshold for overtime pay
This spring, the U.S. Department of Labor (DOL) announced that over the next six months, some 4 million employees in administrative, executive or professional positions will become eligible for overtime.
The first changes took place on July 1, when the threshold weekly salary level for overtime eligibility rose from $684 to $844. That equates to an annual salary of just under $44,000. At the beginning of next year, the salary threshold will increase to $1,128 per week or almost $58,700 annually.
Adjustments aren’t always predictable
The plan is to regularly increase the minimum salary for exemption from overtime pay every three years. However, these things are dependent on who is in power at the federal level. Over roughly the past 50 years, these adjustments haven’t been made regularly. The latest adjustment is the first in over four years.
A DOL official says that the announced threshold increase “restores and extends overtime protections to lower paid salary workers and prevents a future erosion of overtime protections while ensuring greater predictability.”
It’s crucial for employees to know what their rights are under both federal and state law. Unfortunately, you can’t always count on employers to follow – or even know about – changes in the law when they occur. If you have questions or concerns about your workplace rights – including your right to fair pay – it can help to have legal guidance.