Jersey Shore Personal Injury and Employment Specialists

Many salaried workers could soon be eligible for overtime pay

On Behalf of | Jun 3, 2024 | Uncategorized |

Most workers prefer to maintain an amicable relationship with the companies that hire them. However, sometimes organizations mistreat workers or violate their rights. The only form of recourse available if the company isn’t receptive to employee concerns may be litigation. Employees bring lawsuits against businesses for a variety of different reasons.

One of the more common complaints that leader to employee litigation involves a failure to pay wages in full. Overtime wage claims are among the most common issues that employees seek to remedy in civil court. Companies sometimes break the law in their efforts to avoid paying overtime wages to workers. Overtime wage violations can cost employees thousands, and going to court is sometimes the only way for workers to pursue justice.

Who is eligible for overtime pay?

Hourly workers often know that they are potentially eligible for overtime wages. If they work more than 40 hours in a single workweek, they should receive 150% of their usual hourly pay for the excess hours worked.

Many salaried workers understand that they are exempt from overtime pay requirements. Their employers can have them work 50 hours without paying them more than their typical salary. Those who earn relatively low salaries in some cases might soon be eligible for overtime wages due to changing federal policies.

What must a worker earn to be exempt?

The minimum salary is about to increase. With the salary they pay their workers demand overtime work without paying overtime wages. As of 2019, the minimum salary a company had to offer a worker to exempt them from overtime pay was $35,568. As of July 1st, 2024, that increases to $43,888.

There is a second increase included in the same Final rule. On January 1st, 2025, the minimum salary for overtime exemption becomes $58,656. The law also now requires a review every three years to adjust that salary level for inflation and other economic factors. Companies that do not increase what they pay workers either by offering overtime wages or increasing their salaries may violate workers’ rights.

Employees who do not receive the overtime pay they deserve because employers continue to insist that they are exempt may need to pursue employment litigation. Filing a wage claim could help those earning a low salary secure the wages they deserve under new federal rules.