03 Sep Fact Sheet #23: Overtime Pay Requirements of the FLSA U S. Department of Labor
The Department will update this notice with additional information as it becomes available. The federal court in this case found that the 2024 final rule’s high salary increases exceeded the DOL’s authority to define this exemption under the FLSA. The new high salary level tests would displace the other component of the test that is based on job duties, making millions eligible for overtime although they perform the EAP job duties. Workers who fall under the FLSA’s “white-collar” executive, administrative and professional exemptions are not eligible for overtime pay. To qualify for white-collar exemptions, employees must be paid a salary of at least the threshold amount and meet certain duties tests.
Federal Court Strikes Down Labor Department’s Overtime Rule, Rejecting $44K and $59K Salary Thresholds
- The Department of Labor saw similar legal challenges back in 2016 when it proposed a significant increase to the overtime exemption threshold, similar to the new rule.
- There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek.
- This 2025 guide covers updated rules, eligibility, and how to calculate overtime pay accurately.
- We created the Wiztax system to allow anyone to start the process of getting their tax issues resolved online and filed without having to spend thousands on high priced lawyers or tax resolution firms.
- DOL has updated its website to note that lawsuits regarding the 2024 final rule are currently pending in two other federal district courts, and the United States has filed a notice of appeal from the November 15 decision.
- Under the Fair Labor Standards Act (FLSA), employees must meet specific salary thresholds to be considered exempt from overtime pay.
Official websites use .gov A .gov website belongs to an official government organization in the United States. “I think that is why employers like having the H-2A program- because it’s a workforce that can’t really advocate for themselves,” said Franks. This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations.
Overtime Laws and Regulations
The Office of Advocacy supports businesses with less than 500 employees, non-profit organizations, and independent contractors. On behalf of small entities in our country, our mission is to help small businesses as regulations are developed. He emphasized the goal of the legislation is not to work more hours but to ensure workers are fairly compensated and receive the benefits they deserve.
Wage and Hour Laws (including Paid Sick Leave)
Exemption is never based solely on a title—employees must meet all salary and duties requirements outlined in FLSA regulations to be classified as exempt from overtime pay. The U.S. Department of Labor (DOL) enforces the FLSA through its Wage and Hour Division (WHD). This agency investigates complaints, conducts audits, and ensures employers comply with federal overtime law, including proper employee classification and timely payment of overtime wages.
State Overtime Laws That Differ From Federal Rules
Despite setting her own flexible schedule, Ms. Osborn failed to track her hours worked in excess of 40 each week. In her suit, she claimed to work 10-hour days and 15 weekly overtime hours but provided only vague testimony to that effect. According to Franks, the Department of Labor’s current wage system for H-2A workers sets a fixed hourly rate based on data from the Washington Employment Security Department. The current rate is $19.25 per hour, replacing the traditional piece rate, which compensates workers for how much they pick and can result in higher earnings. OLYMPIA — Washington is now one of the first states to fully extend overtime pay to agricultural workers who work beyond 40 hours per week.
- For example, if an employee works 30 hours one week and 50 hours the next, the employer cannot average these to 40 hours per week.
- Train both managers and employees to understand their responsibilities under overtime laws.
- For instance, an employee earning $405 for a 45-hour week has a regular rate of $9/hour ($405 ÷ 45 hours).
- Overtime pay must be calculated as 1.5 times the employee’s regular hourly rate for every hour worked beyond 40 in a week.
- Here’s how employers and employees can successfully manage generative AI and other AI-powered systems.
- By knowing what the threshold adjustment looks like in advance, employers can make more informed decisions on how to structure their staffing and hours.
StateExempt Employees
The contents of this document do not have the force and effect of law and are not meant to bind the public in any way. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies. “But I do recognize that the minimum wage hasn’t been raised since 2009, and the cost of living has gone up,” she said. Since the aggregate method utilizes total income to determine tax withholding, you may be subject to a higher withholding rate rather than the flat rate. However, they did not change the personal exemption (which remains 0) or the no-limitation provision for itemized deductions.
The Department of Labor (DOL) administers federal labor laws to guarantee workers’ rights to fair, safe, and healthy working conditions, including minimum hourly wage and overtime pay, protection against employment discrimination, and unemployment insurance. “For this reason, SHRM advocated for a more nuanced, geographically tailored approach to any increase in the EAP salary threshold. HB 1597 and SB 5487, if enacted, would overtime pay u s. department of labor allow employers to select a 12-week period each year during which agricultural employees can work up to 50 hours per week before overtime pay is required.
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