“congress’ intent was to allow exemptions from the fair labor standards act’s overtime and minimum wage protections for a relatively small group of high-paid employees who were effectively already being compensated for the extra hours that they worked by their high level of compensation. Key in the ruling is a finding that congress intended the flsa to exempt executive, administrative and professional, or eap, employees from overtime requirements on the basis of their work duties. B the portal-to-portal act in 1947, congress passed the portal-to-portal act (22) to clarify overtime compensation for activities considered preliminary or postliminary to the principal work activity. The obama administration claims that this new rule will increase pay to workers and even increase employment but the economic evidence demonstrates that the opposite it true: employers react to higher overtime thresholds by cutting base pay or overall compensation (like health benefits.
Congress spoke clearly and unambiguously about the type of employees that must be exempt from overtime and the considerations to evaluate such employees, the court said, intending the eap exemption to apply to employees doing actual executive, administrative, and professional duties. The american enterprise institute’s aparna mathur wrote an article claiming that the new overtime rules finalized recently by the department of labor could increase underemployment the argument does not make much sense, however. The obama administration is on the verge of possibly doubling the salary levels that would require employers to pay overtime in the most ambitious government intervention on wages in a decade.
Just when it seemed american workers were about to get a pay bump, the government has made moves to roll back a rule by former president barack obama that would have made millions more workers. Millions of additional americans will qualify for overtime pay under a major change in federal labor law unveiled recently by the obama administration. Advocates on both sides of the issue expect the policy to be challenged in court and perhaps in congress as well back hours could increase hiring comparable employees make today in the. Reclassifying exempt employees to nonexempt, in turn, requires considering a broad range of issues, including communication strategy, manager and employee training, timekeeping policies and practices, scheduling, compensation structures, calculation of the overtime rate, and many other issues. “increasing overtime protections is another step in the president’s effort to grow and strengthen the middle class by raising americans’ wages,” a fact sheet from the white house reads.
This federal statute requires employers to compensate non-exempt employees at time and a half for all time worked over 40 hours in a workweek, but for law enforcement employees, overtime compensation is required if the individual works more than 171 hours per 28-day period. Employees covered by the fair labor standards act (flsa) must receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay the flsa does not require overtime pay for work on saturdays, sundays, holidays, or regular days of rest, unless overtime hours are worked on such days. The state of california's overtime laws differ from federal overtime laws in many respects, and they involve overlapping statutes, regulations, and precedents that govern the compensation of employees in california. California lawmakers vote to expand overtime pay for farmworkers american in 1938, congress passed the fair labor standards act, which laid out wage protections and overtime compensation.
Fair labor standards act (flsa): the flsa establishes employment requirements regarding minimum wage, overtime compensation, and child labor an employer is subject to the flsa if it has annual gross sales of at least $500,000, and has two or more employees engaged in interstate commerce on a regular basis. In the exercise of its power to regulate wages and hours of employment in interstate commerce, congress may increase wages for overtime not merely to safeguard the health of employees, but also to discourage overtime work, with a view to spreading employment and for other purposes. Your employer might even reduce your base hourly wage in order to account for the overtime pay you'll receive, thus keeping your overall annual compensation the same. Overdue overtime the voices of workers and working families to block overtime updates in congress just when it looks like opponents of these comments make clear that american workers are overwhelmingly in favor of the updated overtime rules.
The 79-year-old law currently mandates that certain employees who work more than 40 hours per week must earn time-and-a-half compensation in their next paycheck for the extra time. With this new rule, we’re increasing the cutoff for automatic overtime for salaried workers to $47,476 -- most salaried workers making less than $47,476 will be guaranteed overtime pay for working more than 40 hours a week. In 1985, congress passed a law that gave state and municipal employees this flexibility, but today still denies that same privilege to the entire private sector. To provide this form of compensation, the employer must arrive at an agreement or understanding with employees that compensatory time will be granted instead of cash compensation1 §207(o)(2) 29 cfr § 55323 (1999.
Increasing the salary threshold to $50,440 a year would force employers to pay salaried employees with moderate incomes overtime no matter their job duties the administration and its allies argue. Voted no on allowing compensatory time off for working overtime congressional summary: amends the fair labor standards act of 1938 to authorize private employers to provide compensatory time off to private employees at a rate of 1 1/2 hours per hour of employment for which overtime compensation is required. New overtime bill allows employers to offer time off instead of cash cash or time off if republicans have their way, it’s a choice more companies will be able to give employees working overtime.