What Ohio Employees Must Know About the New FLSA Overtime Laws for 2020
In September of 2019, the Department of Labor released highly anticipated changes to the Fair Labor Standards Act (FLSA) regulations surrounding overtime pay. New FLSA overtime rules regarding which employees qualify to earn overtime pay take effect on Jan. 1, 2020. The rules, which were set under the federal Fair Labor Standards Act (FLSA), apply to all employers in Ohio, and they cover both salaried employees and employees who get paid by the hour.
FLSA and unpaid overtime attorneys at The Friedmann Firm tracked the writing of the new FLSA overtime rules closely. Briefly, here is what employees must know.
How Have the Federal Overtime Laws Changed?
The new 2020 overtime pay rules update and increase the salary test for determining who can earn overtime at a rate of one and one-half their regular hourly rate after working more than 40 hours during a workweek. The most important changes to the salary test are summarized in the following table.
Old Overtime Laws vs. New Overtime Laws Taking Effect in 2020
|Old Rules in Effect from, 2004 through 2019||New Rules Taking Effect in 2020|
|Standard Employee||$455 per week or $23,660 per year (as calculated to include up to 10 percent of nondiscretionary bonuses, incentives, and/or commissions)||$684 per week or $35,568 per year|
|Highly Compensated Employee||$100,000 per year||$107,432 per year|
This means that in order for an employer to classify an employee as exempt from overtime, they must earn at least $684.00 per week or $35,568.00 per year. Employees that are exempt from overtime must fall into one of the following exemptions in order to not be paid overtime:
1) Administrative Exemption
2) Executive Exemption
3) Professional Exemption
More on these exemptions can be found here: https://www.dol.gov/whd/overtime/fs17a_overview.pdf
The DOL estimates that this will make 1.3 million workers eligible for overtime pay.
Most workers should be treated as standard employees when determining overtime eligibility. Highly compensated employees include people like IT staffers and network administrators who typically get paid by the hour at rates that can exceed $100 per hour.
Salary tests also exist for individuals who work in the movie industry and for public safety employees such as police and firefighters. You can contact an employment attorney to get answers to specific questions regarding these other types of employees.
What Didn’t Change?
The only thing that has changed is the amount of money an employee can earn before he or she loses eligibility for overtime pay. The chart above illustrates those changes. This means
- The basic overtime rate remains 1.5 times an employee’s regular hourly pay.
- Tipped employees such as restaurant servers and bartenders remain eligible for overtime.
- Employers cannot automatically declare salaried employees exempt from earning overtime pay.
- Duties tests remain in place and unchanged for executives, administrative personnel, learned professionals, creative professionals, computer employees, and outside salespeople.
- Duties tests apply to both salaried employees and employees who get paid by the hour.
- An employee must pass both the applicable salary test and duties test to qualify for overtime pay from January 1, 2020 forward.
- An employer cannot categorize an employee as an executive, administrator, etc. solely to make that person ineligible to earn overtime.
- Employees can sue employers for unpaid overtime.
- Employers who are found to violate federal overtime rule can be made to pay back wages with interest, punitive damages, and attorney fees for employees.
Many unpaid overtime cases involve misapplications of duties tests, meaning your employer may classify you as exempt when you are truly non-exempt and should be earning overtime pay. An examination of your actual job duties, not your job title, will dictate whether you are eligible for overtime pay.
Ohio Wage Laws Will Stay the Same
New 2020 FLSA overtime pay rule does not change anything about Ohio’s laws regard the minimum wage, the prevailing wage, or employment contracts.
Attorneys at The Friedmann Firm offer free and confidential consultations on all aspects of federal and state employment law. To speak with a lawyer, call our Columbus offices at 614.610.9755.
Rachel and Dominick were incredibly helpful throughout the entire process. They got back to me quickly, whenever I had questions, which helped me stay calm during a very stressful time. Rachel was confident in her abilities and knowledge of the labor laws, and she was able to secure a settlement for me. If you ever find yourself in a situation that requires you take action against an employer, I would highly recommend the Friedman Firm. There's no one I would recommend more to be in your corner.
If you are in need of an employment attorney, this is your sign to talk to Rachel and Jamie. Amazing!! They handled my case like the true professionals they are! They stuck to a strategy, even when it seemed like it wasn’t going our way and BAM! We get the outcome we wanted. I couldn’t be happier and I will always return to them if I EVER have an employment issue again. Thank you so much for helping me and my family!
Dedicated! Thorough! Detailed! Professional! Personable! I can keep going with the many qualities Pete and his team have. I highly recommend him!!! You won't be disappointed.
I needed an employment lawyer to work through a non compete. Pete at The Friedmann Firm was listed as one of the three best rated employment lawyers on a local website. I called him in the morning and later that night he was on the case and provided sound council through a very tense negotiation. Don’t take a chance with your career, reach out and get good council. Pete was very responsive every step of the way and delivered positive results. I highly recommend Pete and his Firm!
Rachel was top-notch from start to finish. She was responsible, professional, quick to respond to emails, texts or phone calls. She gives it to you straight, which I prefer! She thinks outside the box and is definitely the dog you want in the fight for you. She does not waste time and immediately dives right in to get the best results she can for you. I would highly recommend Rachel and her firm to anyone who wants to get the job done right, the first time, in a professional, compassionate and decisive manner.
My wife used this firm for a matter she had with her former employer. She could not have been more satisfied with their services. They were timely in responses, courteous, and very thoughtful. This was a difficult process for her and Pete made it so much easier by handling all of the details of her case.
Rachel Sabo of The Friedmann Firm believed in me when no one else did & helped me through every step of my legal process. Very happy with the firm’s professionalism & dedication to my case.
I called them with some questions about my employment and Jamie was very helpful. I didn’t need an attorney to handle a case for me - only to help me navigate an issue I was having at work. She answered my questions and I felt she truly listened to me. I’d recommend this firm to anyone looking for an employment lawyer. Thank you!
Pete resolved issues I was having with my employer in a quick and favorable manner. He is also easy to talk to and understands his clients rights AND needs. You’d do right to call The Friedmann Firm.
I had a terrific experience with Rachel. She handled my case in a very professional manner. She made herself available and always kept me updated. Her knowledge of the law is incredible. She took the time to educate me on the legal processes so I understood what was happening with my case. Thank you Rachel for helping me navigate a most difficult situation. I am so thankful to have had you as my attorney. You have my highest recommendation.