New federal overtime pay rule goes into effect

On Behalf of | Feb 25, 2020 | Uncategorized

The U.S. Labor Department’s new compensation rules took effect on New Year’s Day, extending overtime pay to 1.3 million American workers, according to the agency.

The new rule raises the overtime pay requirement for so-called non-exempt workers to $35,568.


New York’s exempt thresholds are higher

Several states, including New York, have already established higher salary thresholds to determine eligibility for overtime. They are:

  • $58,500: New York City
  • $50,700: Suffolk, Westchester and Nassau counties
  • $46,020: All other areas of the state

The new rule replaces the Obama-era threshold

Under President Obama, the pay threshold was set at $47,000 in 2016 until a Texas district court judge blocked the rule after some companies argued the amount was too high. When the rule was issued, officials said it was more in line with inflation when compared to the 1975 threshold of $8,060.

Under the Trump administration, the Labor Department instead set the amount to $35,568 after three years of debate, lawsuits and negotiations. When the rule took effect, it was the first increase since the Bush administration raised the threshold to $23,660 in 2004.

Make sure your employer complies with overtime standards

Anyone earning less than the thresholds outlined above is entitled to receive time-and-a-half pay for hours worked over 40 each week.

A recent study by the Economic Policy Institute found that employers in the U.S. routinely steal billions of dollars in wages each year from workers by not paying overtime, asking them to work off the clock and a variety of other illegal practices. An experienced employment law attorney can help you receive the compensation you have earned.

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