Legal Blog
Watch the Clock: Federal Overtime Rules Changing
In our ever-connected workplaces, many employees work more than their “regular” schedule. Recently, the federal government announced an update to its rules surrounding overtime. While primarily governed by the Fair Labor Standards Act (FLSA), the Department of Labor has many modifying rules that set out how employers/employees apply the FLSA
Under the update, employees that make more than $35,568 will be eligible for overtime, effective January 1, 2020. Previously, the “threshold” was $23,660. Whether an employee is “exempt” or not eligible for overtime is based on a variety of factors in addition to the threshold. As such, employers should plan on updating their policies and reviewing their application of the law given the new announcement.
It should be noted that certain states (i.e. New York and Pennsylvania) set the threshold higher than the federal government. In those states, employers must pay overtime consistent with state law and cannot opt for the “lower” federal government standard. The list of states increasing the federal threshold is constantly growing – all the more reason for employers to continue to watch their policies and compliance efforts.
If you have any questions about this or any other Labor and Employment topics, please contact me at tstringham@offitkurman.com or 703-745-1849
ABOUT THEODORA STRINGHAM
tstringham@offitkurman.com | 703-745-1849
Theodora Stringham assists individuals, businesses, and organizations with growing successfully while minimizing liability. Focusing on real estate and personnel needs, Ms. Stringham executes sustainable plans for real estate development and employee matters. She provides comprehensive representation for everyday growth issues, including, but not limited to, re-zonings, site plan approvals, eminent domain/valuation concerns, employment discrimination, and disciplinary issues. Ms. Stringham’s scope of representation ranges from identifying potential liability and providing counseling/trainings, all the way through representation at trial.
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