Experienced Strategists Dedicated to Achieving Clients’ Goals

New Proposed Federal Rule Could Make Millions of Workers Eligible for Overtime

by | Nov 3, 2023 | blog, Fair Labor Standards Act |

Under the Fair Labor Standards Act, employees who work more than 40 hours a week are entitled to overtime pay.  However, there are a few exceptions to this general rule.  Under the law, employees are exempt from overtime pay if they:

  • Works in a “bona fide executive, administrative or professional capacity
  • Are not covered by legal requirements to receive time-and-a-half for overtime and
  • Earn more than $35,568 annually.

A proposed change to the overtime income limit would make time-and-a-half overtime pay available to about 3 million more Americans. This proposal would not change the first two elements listed above, but would raise the income limit, and thereby would greatly increase the pool of eligible workers. If the Department of Labor’s proposal goes into effect, it would raise the exemption limit for overtime pay from $35,568 to $55,000.  Furthermore, if accepted, this proposal would update the income ceiling every three years. The Labor Department is touting this plan as a way to boost the economy by increasing workers’ income.

Tried Once Before

A similar proposal was blocked by a court in 2017. A federal judge ruled that raising the income limit to $47,476 would set the bar too high and would thwart Congress’ intentions by including types of jobs that lawmakers had meant to exclude. A similar court challenge from pro-business groups could lead to the same result in this case.

For now, the proposal must first be published in the Federal Register, after which the public will have 60 days to respond. Undoubtedly, there will be lively debate from both the employee and employer perspectives.

Do you know how wage and hour laws affect you?

Both employees and businesses in Maryland need to know their rights and obligations regarding wages and hours worked and how changes to the law affect them.  If believe you have been denied overtime, contact our expert attorneys at Thatcher Zavaro & Mani to schedule a consultation appointment. 301-850-1246 www.ThatcherLaw.com.

Follow us on: