Schall and Barasch LLC

New Overtime Laws Explained

business woman holding clockChange is in the air thanks to new Labor Department rules introduced by the Obama Administration. The new rules have significantly expanded the categories of workers who should be paid for working overtime. The threshold for salaried workers who are entitled to time-and-a-half overtime pay if they put in over 40 hours a week has risen from $23,660 to $47,476 or $455 to $913 a week. Those who earn more than this and managers are exempt from this particular rule, but will also be entitled to overtime pay, regardless of annual earnings unless they fall into one of the three exemption groupings – administrative, professional, or executive (supervisors) . Also, employees who are paid by the hour are entitled to be paid overtime no matter what they earn.  Another change is that salaried workers earning below the lower threshold will be paid overtime. The new rules will apply from 1 December 2016.

Previously, only 7% of workers qualified for overtime pay. This is a big drop from the 62% who qualified in 1975. With the new rule, an additional 4.2 million workers will be earning overtime pay. According to the Department of Labor, it was time for change considering that the previous cap had not been revised in 12 years despite the considerable rise in the cost of living. Fair wage advocates also say that it will ensure that employers do not take advantage of workers by misclassifying them as managers.

What should you be seeing on your pay slip?

According to labor experts, companies have three options in regard to the new regulations. One is increase salaries to above the $47,476 upper limit in order to exempt them from the rule. The second option is to pay workers time-and-a-half for the extra hours worked per week, and the third is to ensure that workers do not work for more than 40 hours a week and to hire others to pick up the slack.

How do I ensure my boss complies

For young professionals in creative jobs and others where long hours are the rule rather than the exception, claiming overtime may not be straightforward. Some bosses may also be reluctant to comply or may threaten workers with losing their jobs to avoid paying them more.

If you work in New Jersey and you find yourself in this situation, Schall & Barasch LLC are the employee rights advocates to contact to find a proficient and experienced New Jersey employment lawyer. You may also see changes on your pay slip but they may not be as required. Again, a New Jersey employment attorney from Schall & Barasch can advise you on what should be coming your way with the changes. Contact us and let is help you the pay you deserve.

 

 

 


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* In every year since 2014, the law firm of Schall & Barasch has been included in the Tier 1 list of best law firms in New Jersey practicing in the field of employment law on behalf of individuals. This list is compiled by U.S. News & World Report. A description of the selection methodology can be found at www.bestlawfirms.usnews.com/methodology.aspx.

** The methodology for the Avvo ratings of Richard Schall and Patricia Barasch can be found at www.avvo.com/support/avvo_rating.

*** In every year since 2009, Richard Schall has been chosen to be included on the list of Best Lawyers in New Jersey practicing in the field of labor and employment law. The Best Lawyers list is issued by Best Lawyers International. A description of the selection methodology can be found at www.bestlawyers.com/about/MethodologyBasic.aspx.

**** In every year since 2005, both Patricia Barasch and Richard Schall have been chosen to be included on the list of Super Lawyers in New Jersey practicing in the field of employment law on behalf of plaintiffs. The Super Lawyers list is issued by Thomson Reuters. A description of the selection methodology can be found at www.superlawyers.com/about/selection_process.html.

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