Will the Department of Labor Change the Overtime Law?

Posted by: Chris

There are whispers within the business community that the Department of Labor (DOL) could move forward with plans to change the overtime law. How will the law change? How could it impact employees in Oklahoma? Here’s what you should know:

The Minimum Salary Overtime Exemption

The Fair Labor Standards Act (FLSA) requires employers to pay overtime to employees who work over 40 hours per week. However, there are exceptions to this law, including the white collar exemption. To qualify for this exemption, an employee must perform certain job duties and be paid above the minimum salary required by law. If an employee meets both of these requirements, he is not eligible for overtime pay.

The minimum salary is currently set at $23,600 per year, which means employees who make more than this may be exempt from earning overtime pay. In 2016, then-President Obama attempted to raise the minimum salary to $47,476. The business community was outraged by this decision since it would have made overtime pay available to millions of employees who were previously exempt. Although a federal judge blocked this rule from going into effect, many insiders believe that the DOL could make a second attempt to change it.

What Changes Are Expected?

Last year, the DOL asked for public input regarding the current overtime law. Within this request, the DOL acknowledged that the salary increase requested by former President Obama was too high. However, this does not mean that the DOL is not open to raising the salary minimum at all. Many people believe that the DOL will increase the minimum salary so it falls somewhere between $34,000-$36,000. This increase is not as significant as the one proposed by President Obama, but it is a step in the right direction.

How Will New Overtime Laws Affect Employees in Oklahoma?

No changes have been made to the current federal overtime law yet. But, if the DOL successfully increases the minimum salary requirement, thousands of employees in Oklahoma may qualify for overtime pay for the first time. It’s important to stay on top of legal developments in this case to ensure you know if changes are made that could affect your pay.

Have you been denied the overtime pay you deserve? The attorneys at Armstrong & Vaught, P.L.C. will work tirelessly to hold employers accountable for violating your rights. Call us now at 918-582-2500, toll free at (800) 722-8880, or contact us online for a free consultation with a skilled attorney.