New Overtime Regulations Increase Minimum Salary for Administrative Workers to $47,892
New regulations from the Department of Labor under the Fair Labor Standards Act decrease the number of employees who can be classified as salary and be required to work without overtime pay. The change extends protections to 4.2 million workers across the United States.
At present, “executive, administrative and professional employees” may be paid a salary and do not have to be paid time-and-a-half when they work more than 40 hours per week so long as they are paid at least $23,660 per year.
The new regulations recognize the necessity of paying workers fairly, and enough to be able to support themselves and their families. The minimum is raised to $47,892 per year – more than double the previous amount.
Although these “executive, administrative and professional employees” includes some highly paid professionals, it also includes secretaries, administrative assistants, and other office workers who may be taken advantage of by employers and should rightly be paid more when they work more.
Employees will have to wait until December 1, 2016 for these regulations to go into effect. The minimum salary will also be updated every three years to account for cost-of-living increases. The final rule promulgated by the Department of Labor is published in the Federal Register at 81 FR 32391.
If an employer fails to pay you wages in compliance with the Fair Labor Standards Act, you may file suit for back pay, an equal amount as liquidated damages, plus attorney’s fees and court costs.
Culik Law accepts cases for unpaid wages under both Massachusetts and federal law. If you feel your rights have been violated, contact us to see if we can help.