What Is The New FLSA Overtime Rule?

Did the new overtime rule go into effect?

Overtime Rule to Change in 2020.

The US Department of Labor has released the final rule that will make an additional 1.3 million workers eligible for overtime pay.

The new rule goes into effect on January 1, 2020..

What is the minimum salary for exempt employees 2020?

The final rule takes effect on January 1, 2020 and raises the current minimum salary level for exempt employees from $455 per week or $23,660 annually, to $684 per week or $35,568 annually.

How many hours does an exempt employee have to work?

40 hours1. Employees who are exempt can work over 40 hours without additional compensation. Here’s why: the FLSA and state fair labor standards legislation requires employees who work more than 40 hours in any work week to be paid time-and-a-half for those hours.

The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay.

What makes you overtime exempt?

If your CBA establishes a minimum wage for workers at your company that is at least 30% more than the legal minimum wage, you are exempt from overtime laws. As of January 1, 2008, minimum wage in California is $8.00 per hour. This means that if you are paid $10.40 or more per hour, overtime laws do not apply to you.

How many hours is too much for salary?

Hourly employees and non-exempt salaried employees must be paid overtime if they work more than 40 hours in a week. A week is defined as a fixed time period of 168 hours, or seven consecutive 24-hour days.

Is working over 8 hours in a day overtime?

Working more than 8 hours in a day offers the same overtime rate as over 40 hours in a week. Even if the employee works less than 40 hours in the week, long days provide additional compensation. If the long day extends to more than 12 hours, the rate increases to double the employee’s regular hourly rate.

How far back can I sue for overtime?

2 yearsUnder federal law, which sets the time limits in most states, claims for unpaid overtime must be brought within 2 years. If the employer’s violation of the wage payment laws is “willful”, the timeframe can be extended to 3 years.

Do exempt employees have to work 8 hours a day?

Most employers expect their exempt employees to work the number of hours necessary to get their jobs done. It doesn’t matter if that takes more or fewer than 40 hours per week. Even if your exempt employee works 70 hours in a week, you are still only required to pay them their standard base salary.

What does the new overtime rule mean?

FLSA Overtime Rule Coverage. New Overtime Rule Raises Salary Cut-Off to $35,568. Employees who make less than $35,568 are now eligible for overtime pay under a final rule issued by the U.S. Department of Labor (DOL). The new rate will take effect Jan. 1, 2020.

How is FLSA overtime calculated?

Under the FLSA, overtime pay is determined by multiplying the employee’s “straight time rate of pay” by all overtime hours worked PLUS one-half of the employee’s “hourly regular rate of pay” times all overtime hours worked. All overtime work that is ordered or approved must be compensated.

Who is exempt from FLSA overtime?

An exempt employee is not paid overtime wages for hours worked over 40 in a workweek. To be considered exempt from FLSA, an employee must be paid on a salary basis, and must have exempt job duties.

What is the new FLSA salary threshold?

The FLSA salary threshold is the minimum salary employers must pay employees for them to be exempt from overtime wages. Beginning January 1, 2020, the salary threshold increases, making a number of previously exempt employees nonexempt. The new FLSA salary threshold is $35,568 annually or $684 per week.

What is the 8 44 rule?

Most employees are entitled to overtime pay. There are some exemptions for certain industries and professions. Overtime is all hours worked over 8 hours a day or 44 hours a week, whichever is greater (8/44 rule).

What jobs are not covered by FLSA?

Some employees are exempt from FLSA requirements, such as pay for overtime and minimum wages, even though their employers are covered. For example, many airline employees are exempt from the FLSA’s overtime provisions. And most companions for the elderly are exempt from both minimum wage and overtime provisions.