Even if you don’t follow financial news regularly, you may be aware of a story that recently made headlines across the country.
CNN Money reported on a new rule issued by the federal government, which makes overtime pay available to millions more Americans that were unable to qualify under previous law.
In general, employees making a salary under a designated threshold can now claim overtime, where these payments were unavailable before the rule was announced.
As experienced New York Minimum Wage and Overtime Attorneys we can help you better understand how the new overtime rule impacts you, but as a starting point we cover the basics in this article.
Federal Regulations on Overtime Pay: The Fair Labor Standards Act (FLSA) is the law that covers overtime in New York.
It requires employers to pay 1.5 times your regular rate of pay if you work over 40 hours in any workweek. Your regular pay rate may be minimum wage or higher, but your employer is still required to pay the time-and-a-half wage.
There are limitations to the FLSA on certain employment practices:
- It does not require your employer to pay the overtime rate for holidays or weekends, unless that time goes over 40 hours for the relevant week;
- Your employer does not have to pay for vacation, holiday, sick pay, and similar wages;
- The FLSA does not force your employer to pay higher rates on weekends or holidays; and,
- Employee benefits, like health insurance or pension plans, are not required.
New White Collar Exemption
Starting in December 2016, there is a new regulation that applies to salaried employees. If you make less than $913 per week ($47,476 annually), you will qualify for overtime pay when you work more than 40 hours per week. This marks a change over the old threshold amount, which was $455 per week, or $23,660 per year.
Watch Out for Job Misclassification
Employers may misclassify you for overtime pay, whether due to mistake or actual dishonesty. There are a few scenarios where your employer may tell you that overtime pay does not apply:
- You are paid a salary;
- You did not have your overtime approved by the employer or a manager;
- Your average hours over a two-week period were less than 40 hours per week each, such as working 30 hours one week and 50 the next; or,
- You are given a title that does not allow for overtime, such as “manager,” “supervisor,” or “contractor.”
These are cases of misclassification, for which you may be able to recover unpaid wages through the Secretary of Labor or a private lawsuit.
Contact A New York Unpaid Wages Attorney
The passage of the new rule may mean you’re entitled to receive overtime pay that you were previously unable to claim, but some employers may not yet be on board. If you’re an underpaid worker or are having problems obtaining the pay you deserve, you need a knowledgeable New York Unpaid Wages Lawyer to represent your interests. Contact us at Cilenti & Cooper, PLLC for more information on the new overtime rule or other pay-related matters in New York. Our firm is centrally located in Manhattan and serves all boroughs including Manhattan, The Bronx, Brooklyn, and Queens.[:]