New Salary Threshold Will Make Millions of New Workers Eligible for Overtime Pay

With the salary threshold amendments to the Fair Labor Standards Act (FLSA) set to become effective on December 1, millions of additional American workers will become eligible for overtime pay. The amendment with double the annual salary level that limits who is entitled to overtime pay. The current threshold level is $23,660. This means that if you make more than this amount, and perform certain “white collar” duties, you may be considered exempt and not entitled to extra compensation, regardless of the number of hours worked. The threshold will now be raised to $47,476, which will dramatically increase the number of workers eligible for overtime.

Whether you are exempt v. non-exempt can make a substantial difference on your take home pay. Pursuant to the FLSA non-exempt workers who put in more than 40 hours in any work week are entitled to be paid one and one half times their current rate of pay for any additional time spent working. Previously, millions of employees who were making a lower salary but considered “exempt” were deprived of this option. An estimated 4 million more workers may be covered, with retail and food service workers thought to have the most gains. Further, the salary threshold will be tied to inflation, so the level should automatically update every three years.

For more information or to determine how this law may affect you, please contact the experienced Georgia wage and hour lawyers at Buckley Beal, LLP for an immediate consultation.

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