On June 30, 2015, the White House announced proposed changes to the Department of Labor’s current overtime payment rules. If enacted, the changes would mean that approximately 160,000 Georgia employees would become entitled to 1.5 times their hourly rate of pay for all hours worked in a given week in excess of forty hours.

Under the current system, certain employees who work more than forty (40) hours per week are entitled to overtime pay at a rate of 1.5 times their normal salary for all hours worked in excess of forty (40) hours in a given work week. Whether a particular employee is exempt from overtime pay requirements is determined on the basis of two primary factors.

  1. First, the employee’s job duties must fall into one of the pre-defined categories of exemptions to the Fair Labor Standard Act’s (“FLSA”) minimum wage and overtime payment requirements, such as the executive, administrative or professional.
  2. Second, even where an employee’s job duties satisfy the requirements of one of the exemptions, the employee must also be paid a minimum salary of at least $455.00 per week to qualify for an exemption.

Employees paid less than $455.00 per week will generally not be exempt from the rule requiring overtime payment for hours worked in excess of 40 hours per week, regardless of the employee’s job duties.

The Department of Labor’s proposed changes would increase the salary floor for qualification for exemption from overtime payment from $455.00 per week to $970 .00 per week. This change would extend overtime pay (and, though not addressed in this post, the FLSA’s minimum wage requirements) to approximately 160,000 Georgia workers.

The potential effects of the proposed changes to the Department of Labor’s overtime payment and minimum wage requirements are far-reaching, both for employers and for employees. Please do not hesitate to contact MBW Law for a free consultation if you have questions about overtime payment, minimum wage requirements, or the newly proposed Department of Labor regulations.

July 8, 2015

Proposed Changes to Department of Labor’s Overtime Rules Would Entitle 160,000 Georgia Workers to Increased Pay for Overtime Work

On June 30, 2015, the White House announced proposed changes to the Department of Labor’s current overtime payment rules. If enacted, the changes would mean that approximately 160,000 Georgia employees would become entitled to 1.5 times their hourly rate of pay for all hours worked in a given week in excess of forty hours. Under the current system, certain employees who work more than forty (40) hours per week are entitled to overtime pay at a rate of 1.5 times their normal salary for all hours worked in excess of forty (40) hours in a given work week. Whether a […]
January 28, 2015

What Are Severance Agreements, And Can I Get One?

If you work as a W-2 employee in Georgia your employment is most likely employment at will. The largest exception is if you were able to enter into an employment agreement either at the beginning of your employment or at some point during your employment that states otherwise. However, unless you are an executive of a large company, the odds are that you do not have an employment agreement that changes your at will status. Employment at will means that you can quit your job at any time and for any reason and your employer can fire you at any […]
January 28, 2015

What Is Employment At Will?

Employment at will, in its simplest form, means that your employer can terminate your employment with or without cause, and with any reason or no reason. Likewise, you can voluntarily resign from your employment with or without case and at any time.for any reason. In the State of Georgia, unless otherwise agreed to, your employment is at will, and thus, Georgia is a right to work state. However, there are clear exceptions to employment at will, including federal laws that protect employees from suffering an adverse employment decision based on being in a protected class, which include, but are not […]
January 28, 2015

Independent Contractor Or W-2 Employee?

In today’s economy, employers are trying to find ways to save money while either retaining their existing employees or increasing their workforce.  One technique that has been on the rise for employers is classifying individuals as independent contractors, rather than as employees.  By doing this, employers theoretically save money by not having to provide the same benefits they otherwise have to provide to employees, such as health insurance, workers’ compensation insurance and vacation time.  In addition, by classifying an individual as an independent contractor rather than an employee, the employer does not have to pay any overtime or Social Security […]
January 28, 2015

When Do You Have To Pay Overtime?

Because Georgia does not have any direct laws regarding the payment of overtime to employees, Georgia employers will most likely be covered by the Fair Labor Standards Act.  The Fair Labor Standards Act provides that employees who work more than 40 hours in a week are entitled to 1 ½ times their regular rate of pay for the hours above 40. For example, assume that Beth works as an accounts receivable clerk; her regular rate of pay is $10.00 per hour, and she works 50 hours in a week.  Beth’s compensation for the week should be $550.00 (40 hours x […]
January 28, 2015

Are Non-Compete Agreements Enforceable?

In an effort to protect their business, many employers ask their employees to sign a non-compete agreement at the beginning of the employment relationship. Non-compete agreements state that for a period of time after the employee leaves the company, the employee cannot work for a competitor. Because Georgia courts view non-compete agreements as being a restriction on the employee’s ability to earn a living, the non-compete agreement must be limited in both time and scope. For example, assume Pete is a manager of ABC Wood Floors in Alpharetta, where they specialize in wood floors, and do not sell any other […]