2020 Overtime Pay Rules
Overtime Pay Rules Implemented in 2020
On January 1, 2020, a rule by the Department of Labor took effect that made overtime pay available to 1.3 million newly eligible American workers. While the impact of the COVID-19 pandemic will change the way we work, it is important for all workers to understand these changes. This is especially true for essential workers as people pay closer and closer attention to their work conditions.
As you read, remember that our Houston overtime attorneys are available to answer any questions you have about federal overtime pay laws. Typically, any employees who work more than 40 hours in a workweek feel they deserve overtime. However true that may be, some employees are exempt from overtime provisions.
Updates to Overtime Pay Rules
The final rule by the Department of Labor updates the earnings thresholds to exempt executive, administrative and professional employees from minimum wage and overtime pay requirements in the Fair Labor Standards Act (FLSA). Confusion is common with this act, and our experienced FLSA attorneys can help you understand anything that feels unclear.
These updates also allow employers to count a portion of bonuses and commissions towards the salary level so that employees meet the requirements. For instance, the following is now true of overtime pay requirements:
- The standard salary level is now $684/week or $35,568/year for a salaried employee.
- The total annual compensation required for “highly compensated employees” is now $107,432/year.
- Employers may now use annual non-discretionary bonuses and incentive payments to satisfy up to 10% of the standard salary level. This recognizes evolving pay practices and includes commissions.
Tools Available to Understand the FLSA Update
Are you entitled to receive overtime pay? Oftentimes, overtime laws are confusing to navigate. Still, it is important for companies to pay employees for their regular hours.
Recognizing that the FLSA and federal laws are often difficult to understand, the Department of Labor provides the below resources to allow workers to understand their rights and responsibilities.
- This webinar discusses the final rule and addresses a variety of topics related to salaries and duties.
- These detailed fact sheets provide overviews of common overtime pay issues as well as information on exemptions and occupations.
- The Wage and Hour Division produced e-tools that help employees calculate overtime pay owed and understand whether they are exempt under the FLSA.
- Workers can use the DoL’s updated timesheet app to track their hours, breaks, and overtime hours.
- This compliance assistance guide allows employees to evaluate their workplace.
Houston Overtime Attorneys and the FLSA
When the above resources don’t help enough, remember that our experienced Houston FLSA attorneys are available. We work with employees to ensure the protection of their rights. When you are due overtime wages yet have an employer avoiding paying them, we will fight for you.
In these trying times, it is evident how essential workers are. Unfortunately, employers often think of themselves first and the workers second. Our Houston overtime attorneys have the knowledge and experience necessary to fight for you.