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.
In the coming weeks and months, the U.S. Labor Department is going to release new salary thresholds under the Fair Labor Standards Act (FLSA). These thresholds will potentially impact millions of American workers. Currently, salaried employees performing executive, administrative or professional duties are not eligible to receive overtime if they earn more than $23,600 a year. Under these proposed new rules, the overtime threshold will increase to $50,440 a year. Consequently, workers in many fields who earn less than this amount will be eligible for overtime when they work more than 40 hours in a week.
For Greenbelt residents, overtime wages are governed by both federal and Maryland state employment law. "Overtime" refers to payment to an employee, at the rate of one and one-half times the regular hourly wage, for work performed in excess of 40 hours in a seven-day week.