As of December 1, 2016, the United States DOL (Department of Labor) has created new regulations regarding eligibility for overtime pay under the Fair Labor Standards Act.

More than four million employees who were previously ineligible for overtime pay will now become eligible through the FLSA regulations. FLSA entitles employees to a minimum wage in addition to overtime pay that is 1.5 times their regular pay rate (i.e., time and a half). Overtime pay is awarded when employees work more than forty hours in one week - unless they are part of an exempt category.

Overtime Laws and Exemptions

These regulation changes affect the definition of "exempt" activities. Previously, the definition of "exempt" activities was much broader. It included salaried employees who performed computer duties, administrative duties, professional duties, or executive duties and earned a sum of at least $455 per week. Employees who did not meet these standards might have also been "exempt" if their salary was high enough.

The exemption rules were initially written to protect employers from needing to compensate their workers at a rate they could not afford. These rules resulted in the abuse of FLSA by employers, even though the legislation was initially passed for the protection of employees. Multiple employers created job classifications which stated that their employees had a professional or managerial job, even when the employee's tasks did not fall into the criteria for professional or administrative positions, to skit around overtime laws.

Defining the Changes in Overtime Pay

The new classifications and regulations change the qualifications for "exempt" status. Now employees must earn at least $913 for each workweek, or a sum of $47,476 to be exempt from overtime benefits due to a professional or managerial position. Meanwhile, the "highly compensated" exemption status has been changed to $913 of income per week and at least $134,004 annually.

The change affects millions of Americans who had previously been under-compensated despite working more than forty hours per week. That said, many employers are still looking for ways to skirt the overtime payment laws by misclassifying their labor employees or misreporting incomes.

If you need to fight to get your overtime pay, it's time to contact an attorney who will fight for you. Michigan state law works in conjunction with federal law to ensure that all employees receive a minimum wage and that they receive compensation when they work more than forty hours per week.

The attorneys at Michigan Legal Center can help you understand your employment rights and get the wage that you deserve. If you feel that you have been wrongly denied overtime pay, contact us today at (800) 961-8477 for a free case evaluation.

Related Posts

Top 5 Things to Know About Federal Employment...

Federal law forbids any form of discrimination in relation to employment. These laws are enforced...

No Retaliation Against Employees Filing for Michigan Workers’...

The Michigan Workers’ Disability Compensation Act prohibits employers from retaliating against their employees for filing...

Workplace Discrimination and Retaliatory Intent Explained

Federal law and state anti-discrimination laws forbid companies from retaliating against any individual who opposes...

Previous PostNext Post

Get Answers From Experienced Lawyers

We are available for free consultations in person, via Zoom or through FaceTime.

2723 South State St,

Ann Arbor, MI 48104

9750 Highland Rd

White Lake, MI 48386

336 W First St

Flint, MI 48502

251 North Rose St, Ste 200-6013

Kalamazoo, MI 49007

250 Monroe Ave NW, Ste 400-706039

Grand Rapids, MI 49503

2000 Town Center, Ste 1900-1237

Southfield, MI 48075

120 N Washington Square, Ste 300-5101

Lansing, MI 48933

401 Center Ave, Ste 25

Bay City, MI 48708

125 East Main St, C/O Fourge Coworking

Gaylord, MI 49735

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram