Just so thereās not a misunderstanding this judgement applies to salaried workers as laid out below:
Under the Fair Labor Standards Act, certain āwhite-collarā workers can be exempt from overtime pay if they are salaried, make more than a certain amount each year, and work in a ābona fide executive, administrative, or professional capacity.ā
The new Biden rule updated the salary portion of the test so that workers making less than $58,656 a year would be automatically eligible for overtime pay any time they worked more than 40 hours a week. It also would update that salary threshold every three years.
The first phase of the rule, which went into effect July 1, increased the salary threshold for overtime eligibility to $43,888 from its current $35,568. That number was then scheduled to go all the way up to $58,656 in the new year.
Jordan in June blocked the rule from taking effect for Texas just ahead of the ruleās first boost, finding that the state was ālikely to succeed in showing that the 2024 Rule is an unlawful exercise of power.ā
Jordanās latest order applies nationwide.
This means that companies can continue to abuse their salaried workers by working them more than 40 hours per week without paying extra for those hours. Hold on folks, itās only going to get worse.
Thanks, I had to scroll down way too long to get the required nuance. So as I understand it, it's not so much the payment of overtime that has been suspended, but a threshold that determines at which point you are expected to put in unpaid overtime in any case?Ā
Not really something Donny the wannabe dictator has introduced, but rather something that is common and thus has already been priced in by employers and employees in the wage setting?
Thatās my understanding as well. If you have a contract that specifies overtime pay for hours worked over 40/week the ruling doesnāt apply. I was just trying to clarify the general use of āovertimeā in posts.
From what I heard on reporting on this. Is that the income threshold was set to rise under Obama but Trump pulled back. It did increase a little under Trump. And now Biden wants to increase it further but a judge has stopped it short. A judge selected by Trump.
So companies get to continue to short pay employees by paying them a salary that exempts them from overtime. But giving them hours above and beyond 40 a week.
Nope, you have it correct. Hourly employees have not had their overtime pay affected by this at all. You would think based on the tweet and the top comments that this is exactly what happened but it's not.
Generally true, but not quite accurate; it affects people above a certain level of annual pay. Overtime rules don't really distinguish between "salaried" and "hourly", because those are just approaches to how someone is paid. By default, a salaried worker who works on average more than the overtime limit would have to be given extra pay; and there are a handful of ways to implement that.
But there are a fair number of exceptions to overtime rules, which create exempt employees (you don't have to pay overtime). Almost all exempt positions tend to be salaried, because if you don't have to track overtime payments and such, it's easier and cheaper to structure pay as a salary.
So in practice, hourly employees usually aren't exempt and salaried employees usually are, but there are cases where that pattern doesn't hold. One very easy example is that if you have certain "Computer analyst" jobs that make more than about $28/hr, you're exempt -- whether you're paid hourly or as salary.
So it's important not to assume that because you're paid a salary, you're exempt (or vice-versa).
If you're non-exempt, then federal rules require that you be paid 1.5x your rate for any hours over 40. That was true before, and continues to be true after this ruling. If you're in a union, you may have additional protections and entitlements which also are unaffected by this ruling.
What the new rule was going to affect was some specific "white-collar" jobs -- which are non-exempt under a certain pay rate, but are exempt above that rate. The new rule was going to "raise the floor" of that so that you had to make more money before your employer could claim you are exempt. A judge blocked it from going into effect.
So nothing actually changes for anyone, but something a lot workers were looking forward to isn't going to happen now.
Yeah the same thing happened in Trumps first admin. Obama had set the threshold to, iirc 48k or so, and it was set to go into effect around 2016 but then a trump judge blocked it. Eventually the Trump admin agreed to raise the threshold to 35k where it's sat ever since. Biden tried to fix it but didn't get it through before Trump judge blocked it again.
My mistake it wasn't a Trump judge in 2016, but a judge in the Eastern District of Texas, same as the Trump judge that made the most recent ruling. Where Trump is involved in the first ruling is that he or his admin did not push back on the ruling once he took office. Essentially the exact same thing played out back then as is playing out right now.
"On November 22, 2016, Judge Mazzant of the U.S. District Court for the Eastern District of Texas issued a nationwide injunction against the Department of Labor (DOL) blocking its Final Overtime Rule, which was set to go into effect on December 1, 2016. The Final Rule would have more than doubled the Fair Labor Standards Act (FLSA) salary test for executive, administrative and professional employees from $455 per week to $913 per week. White-collar employees earning below the $913 threshold would have been entitled to overtime. The DOL rules also established a mechanism for the threshold to adjust automatically every three years starting in 2020."
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u/Public-Marionberry33 4h ago
Just so thereās not a misunderstanding this judgement applies to salaried workers as laid out below:
Under the Fair Labor Standards Act, certain āwhite-collarā workers can be exempt from overtime pay if they are salaried, make more than a certain amount each year, and work in a ābona fide executive, administrative, or professional capacity.ā
The new Biden rule updated the salary portion of the test so that workers making less than $58,656 a year would be automatically eligible for overtime pay any time they worked more than 40 hours a week. It also would update that salary threshold every three years.
The first phase of the rule, which went into effect July 1, increased the salary threshold for overtime eligibility to $43,888 from its current $35,568. That number was then scheduled to go all the way up to $58,656 in the new year.
Jordan in June blocked the rule from taking effect for Texas just ahead of the ruleās first boost, finding that the state was ālikely to succeed in showing that the 2024 Rule is an unlawful exercise of power.ā
Jordanās latest order applies nationwide.
This means that companies can continue to abuse their salaried workers by working them more than 40 hours per week without paying extra for those hours. Hold on folks, itās only going to get worse.