Alert: Push to Expand Overtime Pay
On March 13, 2014, President Obama directed the U.S. Department of Labor to revamp its regulations to require overtime pay for millions of fast-food managers, loan officers, computer technicians, and others now classified by many businesses as “executive or professional” employees exempt from the overtime requirements of the Fair Labor Standards Act. The proposed new regulations, subject to public comment, will increase the number of people who qualify for overtime pay. Now employers are prohibited from denying time-and-a-half overtime pay to any salaried worker who makes less than $455 per week. The President’s directive would significantly increase that amount. In addition, there would be changes to the rules that define which workers are exempt from receiving overtime pay based on the kind of work performed. The precise terms and effective date of the final regulations are to be determined.