Are you familiar with the new employee overtime pay rules?

Do you know how many of your employees are entitled to receive overtime pay?

If you do, you will want to check on this issue again in a couple of months because the rules are changing.

The number of employees who are entitled to get overtime pay is about to explode in size.

Most business owners that are subject to the Fair Labor Standards Act are aware that employees who work more than 40 hours in a workweek are entitled to overtime pay UNLESS the employee fits into an exemption. (If you do not know this, you might consider reading this post).

Employees that fit into an exemption do not have to be paid overtime.  Watch out though because the number of employees who qualify for the exemption is about to drastically drop:

The United States Department of Labor has issued new regulations that take effect this fall change the amount of money an employee needs to make to be exempt from the overtime requirements.

The Current Law

The current test is that workers who exceed 40 hours on the job in a week do not have to be paid at overtime rates if they meet three criteria:

  • They are employed on a salaried basis.
  • Their jobs are primarily professional, administrative, or executive.
  • They make at least $35,568.00 per year ($684.00 per week).

How many of those 4.2 million works who are about to become overtime eligible are your employees?

Posted by Shawn Roberts

On this blog, I write about and try to answer practical Oklahoma legal questions. My focus and most experience is in estate planning and business issues including Oklahoma non-compete law. I make a living as an attorney in the law firm I founded, Shawn J. Roberts, P.C. in Oklahoma City. I live in Edmond with my wife Amy and my two children, Sam (19) and David (11). We live precisely in the path of where the "wind comes sweeping down the plains."