The Department of Labor has issued a new rule on who qualifies as exempt from overtime. Classifying a worker as exempt requires identifying a specific exemption, such as the executive, administrative, learned professional, computer employee or outside sales exemptions. Then, the job must both meet the definition of the exemption and exceed the salary threshold.
One of the major priorities of the Trump administration's Department of Labor has been deregulation. The purpose of much of the deregulation is to reduce the cost of legal compliance for employers. At the same time, the DOL still plans robust enforcement of the law, according to the Solicitor of Labor. Other priorities include community outreach, helping employers comply with the law, and ensuring that workers know their rights.
In general, the Fair Labor Standards Act (FLSA) requires all covered, non-exempt workers to be paid 1-1/2 times their regular rate of pay as an overtime premium whenever they work more than 40 hours in a given workweek. This leads to the question, what is the employee's regular rate of pay?
Under the federal Fair Labor Standards Act (FLSA), covered employers with at least 50 employees are required to provide non-exempt, breastfeeding mothers with:
The U.S. Department of Labor recently issued three new opinion letters on overtime pay under the Fair Labor Standards Act. Opinion letters cover specific fact situations presented by employers, workers or other parties and are only legally binding on the party who requested the letter. However, employers may be able to claim safe harbor if they rely on an official opinion letter.
Under the federal Fair Labor Standards Act, non-exempt employees are entitled to the premium overtime rate of 1-1/2 times their regular rate of pay for all hours worked past 40 in a single workweek. The regular rate of pay is determined by adding up all earnings, including non-discretionary bonuses and some other payments, and dividing by the number of hours worked.
The Trump administration's priority for the Department of Labor has been to eliminate regulations thought too costly for businesses to bear. In particular, the administration promised to change how wage and hour law is regulated in the U.S.
Some employees customarily receive tips, but those tips aren't always in addition to the worker's wage. Many tipped workers are minimum-wage earners, and the law allows some of those tips to be counted toward ensuring they earn that minimum wage.
In 2016, the Obama administration's Labor Department proposed a change to the overtime rule in the federal Fair Labor Standards Act. That change would have increased the exempt salary threshold, which is the minimum amount employees must earn in order to be classified as exempt from the FLSA's overtime requirement. However, the change was blocked by an appellate court. Now, the Trump administration's DOL is considering its own changes to the overtime rule, and employer and employee groups testified about their concerns at an Oct. 17 hearing at the DOL.
A group of former cheerleaders for the Houston Texans have filed two employment lawsuits in the past two weeks. The first was filed as a potential class action against the National Football League and alleges that Texans cheerleaders are not fairly compensated or paid overtime as required by the Fair Labor Standards Act. The second suit makes the same claim against the Texans but adds that the women were subjected to a hostile work environment and physical assaults by both the cheerleading coach and Texans fans.