Update on Overtime – Wage and Hour Division

ot-nprm-smallLast night, President Obama’s made an important announcement on overtime. The Wage and Hour Division (WHD) of the U.S. Department of Labor has been working to update the rule that would extend overtime pay to nearly 5 million workers. The proposal would guarantee overtime pay to most salaried workers earning less than an estimated $50,440 next year.

This is incredibly important for workers who deserve a fair day’s pay for a hard day’s work — and it’s great for business owners who are already paying their employees what they deserve.

Following months of extensive consultations with employers, workers, unions, and other stakeholders, WHD developed a proposal that would:

  • Raise the threshold under which most salaried workers are guaranteed overtime to equal the 40th percentile of weekly earnings for full-time salaried workers. As proposed, this would raise the salary threshold from $455 a week ($23,660 a year) – below the poverty threshold for a family of four – to a projected level of $970 a week ($50,440 a year) in 2016.
  • Extend overtime pay and the minimum wage to nearly 5 million workers within the first year of its implementation, of which 56 percent are women and 53 percent have at least a college degree.
  • Provide greater clarity for millions more workers so they – and their employers – can determine more easily if they should be receiving overtime pay.
  • Prevent a future erosion of overtime and ensure greater predictability by automatically updating the salary threshold based on inflation or wage growth over time.

Later this week, President Obama will travel to Wisconsin to talk more about this important step forward toward empowering the middle class and rewarding hard work with a fair wage.

We look forward to continue working together to help American workers.

Employment Law Practice

We represent employees, as well as government and private employers, in a wide range of disputes arising in the workplace, including allegations of discrimination, sexual harassment, wrongful discharge or termination, and retaliatory acts, including retaliatory discharge. We also handle disputes over the right of an employee to collect unemployment compensation after termination of employment.

Contact the Law Firm of DiOrio & Sereni, LLP

To learn how we can help you in an employment dispute, including employees or employers in wage and hour disputes, such as controversies over payment of overtime, vacation pay and other benefits, please call us at 610-565-5700 or send us an e-mail. Evening and weekend meetings can be arranged upon request, and we will travel to meet with you, if necessary.

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The National Trial Lawyers

The Law Firm of DiOrio & Sereni, LLP, is located in Media, PA and serves clients in and around Media, Glen Riddle Lima, Brookhaven, Wallingford, Newtown Square, Lenni, Springfield, Swarthmore, Chester, Aston, Bryn Mawr, Morton, Woodlyn, Broomall, Gradyville, Folsom, Chester Heights, Crum Lynne, Glen Mills, Marcus Hook, Ridley Park, Drexel Hill, Marple, Bethel, Garnet Valley, Chadds Ford Concord, Chester County, Delaware County, Montgomery County, Philadelphia County.

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