June 30, 2015
On June 29, 2015 at 9:16 p.m., Barack Obama published a statement promoting his agenda which included the following sentence about the future of overtime pay: “This week, I’ll head to Wisconsin to discuss my plan to extend overtime protections to nearly 5 million workers in 2016, covering all salaried workers making up to about $50,400 next year.”
As you are probably aware, changes to the regulations governing overtime pay have been in the works for well over a year. This reference to “$50,400” is the best information we have to date about the new financial thresholds which will be required to maintain existing overtime exemptions. Unfortunately, we will not know the exact financial threshold required for overtime eligibility or the new duties tests applicable to the various “white collar” exemptions until the proposed rules are published in the Federal Register and subsequently finalized. Based on this one sentence, however, employers should focus their attention on exempt employees making between $455/week ($23,660/year) and “about” $970/week ($50,400/year). Absent other changes, these white collar employees will likely be eligible for overtime compensation under the new regulations despite the fact that they are exempt from overtime pay under the current regulations.
Please see the PowerPoint presentation at this link for additional information. Similarly, please check our website, www.rcolaw.com, for updates on these new overtime rules as they are made public.
No Legal Advice Intended: This information is not intended, and should not be taken, as legal advice on any particular set of facts or circumstances about the topic. You should contact an attorney for advice on specific legal problems.