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New Federal Overtime Rules Make Additional Workers Eligible for Overtime Pay

Philadelphia employment lawyers can counsel clients on the new federal overtime rules.The U.S. Department of Labor recently issued a final overtime rule that will have an impact on 1.3 million American workers. These updated overtime regulations will put more money in the pockets of hardworking Americans across the country. However, critics of the rule say that it should include more employees who often work over 40 hours per week without receiving overtime pay. Currently, workers making approximately $23,660 per year may receive overtime pay, which falls well below the poverty line for a family of four. Effective January 1, 2020, workers who make an annual salary of up to $35,568 will be eligible for overtime pay. This is the first time in 15 years that changes have been made to overtime regulations.

A proposal was made during the Obama administration that would have raised the minimum salary threshold to approximately $47,000. If this passed, roughly three million additional workers would have been entitled to overtime pay, or a shorter work week. While this appealed to many workers, it did not necessarily benefit workers who were making a higher salary, but who regularly exceeded 40 hours per week. For example, a general manager at Jiffy Lube in Seattle went from making $16 an hour to an annual salary of $52,000 a year. However, due to understaffing, he often worked over 100 hours a week. As a salaried employee, he was not eligible for overtime pay. Given the long hours, his salary was less than what he would have made if he were paid a $16 an hour wage plus overtime.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Assist Clients with Employment Issues Related to Overtime Pay

If your employer failed to compensate you for overtime pay, you may be eligible for compensation. To schedule a confidential consultation, contact the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. at 215-574-0600 or contact us online. Located in Philadelphia, we serve clients throughout South Jersey, Pennsylvania, and New Jersey.