It is important for employees to consult with a wage payment attorney if they believe their employer is not paying them full and fair wages for time worked, including overtime wages. It is also important for employers to get legal advice so they can understand what their obligations are under wage and hour laws and so they can make certain that they are in full compliance with those obligations. As the law evolves and changes, getting legal advice on new requirements is especially essential. 

Just recently, an important rule did change regarding overtime pay of workers. Under the new rule, more workers must be paid overtime wages. A wage payment attorney at Curley & Rothman, LLC can help employers to understand what these new requirements are in relation to overtime rules. An experienced lawyer can also assist employees whose employers fail to follow the rules for making payments of overtime wages.

Call today to find out more about how an attorney can assist with overtime regulations and other issues arising out of federal and state wage and hour laws.

What are the New Overtime Pay Rules?

In May, the Department of Labor instituted new overtime rules by making a change to the definition of “exempt.” Exempt workers are employees who generally are not entitled to receive overtime time. If a worker is classified as an exempt employee, he does not get paid any extra money for hours over 40 per hour. If a worker is not exempt, on the other hand, he generally can get paid time-and-a-half for the extra hours that he works over normal business hours.

In order to be considered exempt, and thus not owed overtime for working longer hours, an employee has to receive a salary, rather than being paid hourly. The employee also has to have administrative duties or professional duties. These aspects of the definition of “exempt” existed before the new Department of Labor rules and these aspects of the rules remain unchanged.

However, there is also a third requirement in order for a worker to be considered exempt. The employee must also be paid above a set salary threshold. The rule regarding the salary a person must earn before being considered exempt is the rule that changed. The DOL raised the threshold salary, making 4.2 million workers suddenly non-exempt from overtime when they had previously been exempt.

Previously, an employee could be considered exempt if the employee made $455 a week, which would equate to a total salary of $23,660 a year. Now, the new threshold salary is significantly higher at $913 per week or $47,476 per year. This is more than double the salary that previously made an employee exempt, so significantly more workers will now be receiving overtime payments. Not only that, but the new rules also provided for automatic increases in the salary that makes a worker exempt. Every three years, the exemption amount will be rising based on wage growth.

All businesses, including small businesses, have to come into compliance with the new overtime rules as of December 1. Employees and employers must both be aware of these new overtime requirements and must continue to monitor wage and hour laws for any subsequent changes that may occur and affect the rights of workers to receive additional compensation from employers.

What if a Company Does not Pay Overtime As Required?

If a company does not pay required wages, including overtime, employees can make a complaint with the Wage and Hour division of the Department of Labor. Employees who aren’t being paid can also file a civil case, either individually or as a part of class action litigation, to recover back pay and penalties.

An employee who was not paid should be compensated for the wages that an employer was supposed to pay but failed to provide. It is up to the employee to demonstrate that he or she  did not receive the payments as required by law. Employees should involve a wage payment attorney as soon as possible to help you make a case for compensation for unpaid overtime wages.

Getting Help from A Wage Payment Attorney

Curley & Rothman, LLC can provide you with advice on the new rules for overtime pay and can assist you in making certain that you are following the rules for your business. If your employer has not paid you overtime as required, or has not paid you any wages that you are owed, it also becomes important to contact an attorney to pursue available legal remedies and obtain back pay. Give us a call at 610-834-8819 or contact us to speak with a Philadelphia wage payment attorney who can help you.