Search Site
Menu

Watch Out for Drastically Increased Overtime Expenses

A recent proposal from the U.S. Department of Labor would double the minimum salary for the overtime exemption for white collar workers, but would still keep the same complicated duties test in place. As a result, liability for any incidents of misclassification could become significantly more expensive.

At this time, salaried employees must make a minimum of $455 per week (which translates to $23,660 per year) to qualify for exemptions from the Fair Labor Standards Act’s overtime and minimum wage requirements. The proposal from the DOL would more than double that amount to $970 per week (or more than $50,000 per year). This would mean, for example, that an employee making about $40,000 a year and putting in five hours of overtime per week could receive as much as $7,200 in extra salary.

Doing the math

Employers are encouraged to review all current salaried-exempt positions in their organizations to determine who is overtime eligible, and then determine what type of impact these proposed changes would have on personnel costs. Employers might, for example, opt to convert certain exempt jobs to hourly positions and restrict the amount of overtime employees can work. They may also cut back on bonuses or benefits to be able to fund salary increases. Whatever steps employers choose, action is necessary to ensure they do not lose a significant amount of money if these changes are implemented.

Businesses and organizations are also allowed to submit comments to the DOL about their thoughts on the proposed new legislation. To learn more about these potential upcoming changes to overtime exemptions, contact Dallas attorney Steve Kardell at Whistleblower Law for Managers today.

Leave a Reply

Your email address will not be published. Required fields are marked *

Honors
Our Office
  • Dallas Office
    4514 Cole Ave
    #600
    Dallas, Texas 75205
    Phone: 214-306-8045
    Fax: 469-729-9926
Testimonials
  • "Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission."  -Richard Bowen, Citigroup Whistleblower

  • "Incredible knowledge of employee related concerns and equally brilliant knowledge of health care regulations, standards of practice. I would recommend this firm to anyone."  -V.B.

  • "Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them."  -KS

  • "Never thought my career would end like it did after 30 years of service. I was part of the first round of the so called reduction of force. I asked myself how can I be part of this with 30 years of seniority. How did they pick these 90 plus employees? Now, the culture of this organization made you question every decision they made. It wasn’t what you knew it’s was a culture of who you know. Nonetheless, I did not accept their severance package. I immediately starting looking for an attorney who would take on my case. After the initial call to Steve I had hope again. He was open and honest about everything and reassured me he would do his best for me, and he did. I had an awesome outcome. Thanks Steve you’re the best."  -S.S.

FOLLOW US
Facebook Twitter Linkedin RSS Feed JD Supra