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Days ago, the public comment period for the new proposed rule to update overtime laws in the U.S. closed. As lawmakers review the feedback and focus on taking the next steps, below is an overview of what you should know about this proposed new rule and how it could impact you.

Proposed Changes to Overtime Laws: What You Should Know

1 – The changes are aimed at fully implementing the intended overtime protections of the FLSA.

Did you know that overtime pay laws may soon change? Here’s a look at the proposed updates, a Los Angeles employment attorney explains.

Did you know that overtime pay laws may soon change? Here’s a look at the proposed updates, a Los Angeles employment attorney explains.

In fact, it’s been more than 10 years since this provision of the FLSA has been updated. This has led to the current exemption for the salary threshold being about $23,660 per year (or $455 weekly). This outdated threshold has led to managers, administrative workers and others being exempt from overtime eligibility, despite the fact this exception was not intended for them (and was, instead, intended for highly-compensated executive, HCE, workers).

As President Barack Obama has stated about this issue:

In this country, a hard day’s work deserves a fair day’s pay. That’s at the heart of what it means to be middle class in America… Let’s invest in America’s future. Let’s commit to an economy that rewards hard work, generates rising incomes, and allows everyone to share in the prosperity of a growing America. Let’s reverse harmful cuts to vital programs, and instead make the critical investments we need to grow our economy and strengthen the middle class.

2 – The new rule would up the compensation requirements for exemption.

Specifically, the proposed rule intends to up the “total annual compensation requirement” to the 90th percentile of earnings for full-time salaried workers. This would set the threshold at $122, 148.

3 – The rule also proposes implementing a mechanism for “automatically updating the salary & compensation levels going forward.”

While much about the proposed new rule for overtime pay is remarkable, this may be one of the more important points, as the rule intends to set up a framework for regularly raising the standard salary and HCE “to ensure that they remain meaningful tests for distinguishing between bona fide executive, administrative and professional workers who are not entitled to overtime and overtime-protected white collar workers.”

What do you think about these proposed updates to the FLSA? Post your opinions on our Facebook & Google+ pages.

Contact a Los Angeles Employment Attorney at Moon and Yang Professional Corporation

If you believe your employer has failed to pay you the wages and/or overtime pay you deserve, it’s time to contact an experienced Los Angeles employment attorney at the Moon and Yang Professional Corporation. At Moon & Yang, our lawyers have a strong commitment to our clients and bring substantial experience, legal knowledge and effective resources to both simple and complex legal matters.

To find out more about our services and how we can help you, contact us today by calling (213) 232-3128 or by emailing us using the contact form on this page.

From our offices based in Los Angeles, our trusted lawyer provide superior service to clients throughout Southern California, including those in Koreatown, Orange, Anaheim, Santa Ana, Buena Park, Garden Grove and throughout Los Angeles and Orange Counties.

Categories: Wage &Hour Violations