HOW DO THE NEW OVERTIME RULES HELP ME?
Under the new overtime rules, will I be entitled to overtime pay? What do the new overtime rules mean for me? If you are looking for the best Ohio overtime wage and hour attorneys to answer your questions, you’ve come to the right place.
The Obama administration and the Department of Labor recent made important changes to the overtime laws currently in effect. Overtime pay is governed by the Fair Labor Standards Act and Ohio’s laws applicable to overtime pay and minimum wage.
The new overtime rules mandate that if you are not paid at least $47,476.00 per year (or $913.00 per week) you are entitled to overtime pay for all hours worked over 40 hours per week. If you do not make at least this amount, whether you are hourly or salary, you must be paid overtime. Beginning December 1, 2016, any employee whom is classified as exempt (not eligible for overtime) must be paid a minimum of $913.00 per week (or $47,476.00 per year) for the employer to avoid paying overtime. Therefore, if you a salaried employee but your hourly rate breaks down to less than $22.825 per hour, you should be getting paid time and a half for each and every hour that you work per week past 40 hours.
Currently, employees must make at least $23,660.00 per year or $455.00 per week for the employer to avoid paying overtime for all hours worked over 40 hours per week. Our overtime pay lawyers in Columbus, Ohio are happy to announce that the changes to the overtime laws will result in this number almost doubling, to $47.476.00 per year. This is an extremely important change for employees because it entitles all employees who are not making at least $47,476.00 per year, or $913.00 per week, to overtime pay for all hours worked over 40 hours per week. For the first time, the overtime rules will allow employers to count non-discretionary bonuses and commissions for up to 10% of the required salary. Therefore, employees could be paid as little as $821.70 per week or $42,728.40 a year in base salary, as long as bonuses and commissions bring them over the minimum, to $47,476.00 per year or $913.00 per week. As a reminder, overtime pay is typically paid at one and one-half of the employee’s regular hourly rate. For more information on whether you are exempt or non-exempt, read this blog article: Should I Be Paid Overtime?
The Department of Labor will also revisit this calculation every three years and adjust the pay thresholds accordingly. This means that the Department of Labor will automatically adjust the minimum salary requirements to match what the 40thpercentile of full-time salaried workers in the lowest-wage census region earn. Therefore, the DOL will look at what salary is being paid to the 40th percentile of workers in the lowest-wage census region and match the salary requirements for overtime pay to that salary. The DOL does this to ensure fairness and transparency. We understand these regulations and changes may be confusing, so if you have questions, contact one of our Ohio overtime pay attorneys today.
What Happens Now?
Once these changes go into effect on December 1, 2016, if you are an “exempt” employee under the FLSA and you make less than $47,476.00 per year or $913.00 per week, your employer must give you a raise. Keep in mind, this number can include non-discretionary bonuses and commission, that can comprise up to 10% of the required salary.
Your employer may also choose to reclassify you as non-exempt and pay you overtime for all hours worked over 40 hours per week.
Lastly, your employer can choose to reduce your hours to ensure you are not actually working any overtime.
The bottom line is that employers will try to find a way around these new overtime rules but we are here to protect you and to fight for what you are owed. The Ohio overtime lawyers at the Friedman Firm can and will help you. If you want to discuss how you are paid to be sure you are being paid correctly, contact us today for a free consultation.
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