Department of Labor Proposes Changes to Minimum Compensation for Salaried Workers

If you are one of approximately 5 million salaried employees in the United States who earns less than $50,000 per year, the Department of Labor’s proposed changes to federal overtime law will be music to your ears.  Under the proposal, many workers who were previously classified as “exempt” from overtime will now be eligible for overtime pay.

Under the current regulations, employers can pay salaried employees as little as $455 per week, or $23,660 per year, and require them to work as many hours as necessary for the benefit of the company. As a result, many employees – such as managers and assistant managers at retail stores and restaurants – work long hours without seeing an increase in their pay.  Because they are paid such low salaries, “exempt” employees have become good investments for employers.  They complete the same tasks as hourly employees at pay rates that – after accounting for the number of hours worked – often work out to be lower than the pay rates received by hourly employees.  The DOL has recognized this injustice, and seeks to remedy it with the proposed regulations.

The proposed changes would more than double the minimum weekly salary employers would have to pay their exempt employees.  An employee would have to receive at least $970 per week, or $50,440 per year to qualify as a salaried employee exempt from overtime pay.  If the changes are implemented, they will go a a long way towards ensuring that hard-working employees receive a living wage when they are required to work long hours for the benefit of their employers.

Kimble Law Office is committed to protecting the interests of hard-working employees.  If you are paid a salary and work over 40 hours per week, contact Kimble Law Office at (937) 286-6428 for a free, confidential consultation to determine if you are entitled to overtime compensation.

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