Federal Judge Recently Blocks Rule to Expand Overtime Pay for Millions of Workers


Just a week before new overtime regulations were scheduled to take effect, a federal judge in Texas blocked a Department of Labor rule that would have extended overtime eligibility to nearly four million Americans, according to NPR.org.  The judge claimed that the Labor Department exceeded its Congressional authority, by instituting such a regulation, increasing the employee salary level subject to overtime pay.

What the Rule Would Have Done

The rule increased the salary threshold for exempt employees. The new regulation would have effectively expanded overtime pay to employees earning less than $47,476 per year. Under current law, only workers making less than $23,660 are eligible for time-and-a-half overtime, if they work more than 40 hours per week.

Obviously, if the rule went into effect, millions of workers would have been eligible to make more money at work. For example, some employers may have simply opted to raise the salaries of some of their employees above the new $47,476 threshold to avoid incurring the additional cost of paying overtime. Other employers may have just bitten the proverbial bullet and paid overtime to their workers. The new rule also would have put a spotlight on the importance of broadening the pool of workers eligible for overtime pay.

Working Overtime Does Not Always Pay

Restaurant workers, baristas, construction workers, and even bankers, are missing out on compensation they have rightfully earned by going above and beyond the requirements of their job; and working overtime hours.

Overtime abuse comes in many forms. A common example is an employer directing workers to clock out so they do not exceed forty hours (requiring the employer to pay overtime), even though the employees must continue working. In other instances, the employee gets a new job title in order to place them in a professional category that is supposedly “exempt” from the Fair Labor Standards Act. There are five types of jobs exempt from overtime pay, if an employee is asked to perform certain duties.   These categories of duties include the following job functions:

  • Administrative;
  • Executive;
  • Professional;
  • Computer/IT; and/or
  • Outside sales.

Fort Lauderdale Overtime Compensation Attorney

If you have worked overtime and believe you should have been compensated appropriately, you may have a claim under the Fair Labor Standards Act (FLSA). The law office of Mark J. Berkowitz, P.A. can evaluate potential overtime claims based upon state and federal law. We understand what is needed to get a case before the court; and we will make every effort to obtain the financial restitution you deserve.

Resources:

Federal Judge Blocks Obama Administration’s Overtime Pay Rule

Overtime Pay