Are you wondering about your overtime eligibility? Even if your employer considers you exempt, you can expect to see a big change. The U.S. Department of Labor (DOL) is reviewing overtime regulations and policies to reflect more Americans in the labor market.
This comes after months-long conversations among politicians who believe overtime pay has been inadequate and inaccessible. The current salary level for exempt white-collar workers is $35,568 annually, which is roughly $684 per week. As an employee who doesn’t earn within that financial threshold, you should be getting paid time and a half for working over 40 hours in a single week.
Most employees are unaware of their rights to fair and full compensation. That puts them at risk of going through a wage and hour dispute down the road. Before you reach out to a workplace lawyer, we list a few key details of the 2019 overtime rule:
- Workers earning $35,568 or less must be paid overtime, even in managerial positions
- Bonuses and incentives can only account for 10% of the salary indicated via contract
- Special salaries are available depending on the industry and U.S. territory you live in
- The DOL can propose to adjust the salary threshold – but changes are not immediate
California Representative Mark Takano is one of many to suggest a new annual cap of $85,000 by 2023. It’s unclear whether the DOL will adjust the amount or decide not to make any changes at all. Fortunately for Angelenos, businesses already have a high overtime salary threshold. California laws designate different white-collar exemptions based on the size of your company.
The threshold of those working for an employer with 26 or more employees is $1,120 a week or $58,240 annually. For companies with 25 or fewer workers, it becomes $1,040 per week or $54,080 annually. A significantly higher cap could considerably impact your workforce. Employers who struggle to meet demands could be faced with a tough decision to downsize.
If you need a lawyer to sue an employer for unpaid wages, give us a call. We can provide you with the best legal advice to address your employer before helping you file a claim with the Equal Employment Opportunity Commission.