Last year, the Department of Labor issued a new ruling for overtime pay extending the maximum salary threshold a worker can earn and still be eligible for overtime to $47,500. The new rule, which was set to take effect on December 1, 2016, would enable approximately 4 million more workers to become eligible for overtime pay. However, in November of 2016, a federal court judge in Texas temporarily blocked the rule, holding that it does not comply with the Fair Labor Standards Act on the grounds that the Labor Department may not decide which workers qualify for overtime based only on their salary. The Department of Justice under President Obama appealed this decision.
With the law temporarily blocked and a new administration in place, the future of the overtime rule is uncertain. The federal court in Texas has given the DOJ until May 1, 2017 to file a brief stating its position. Aside from the uncertainty of whether the DOJ pursues its appeal, another issue is whether the Department of Labor intends to simply repeal the new rule, or issue an alternative rule. The current salary threshold below which workers qualify for overtime wages is just $23,660 per year. Millions of workers will be impacted by the future of the overtime rule and their fates hang in the balance.
Philadelphia Wage Dispute Lawyers at Sidkoff, Pincus & Green P.C. Represent Employees in Overtime and Wage Disputes
If you have an employment concern or wage dispute issue, the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. have the experience to help you achieve an optimal outcome. Call 215-574-0600 to schedule a consultation about your case or contact us online. Our offices are conveniently located in Philadelphia and we serve clients in Southeastern Pennsylvania and New Jersey.