The Fair Labor Standards Act may soon see revisions as President Barack Obama and other key politicians call for more employees to be eligible for overtime pay. While the proposed federal law is receiving backlash from business owners, it would mean more equitable pay for millions of workers across the nation.
As the law stands now, the Fair Labor Standards Act states that employees who make less than $23,660 annually and work more than 40 hours a week must be paid time and a half for those extra hours. But, employees who make more or are classified as executives, administrators or professionals may be working well over the 40-hour limit and are not properly compensated.
Because that previous income cutoff was set in 1975, it needs to be adjusted for inflation. The newly proposed cutoff is $52,000 a year. Even raising it to $51,000 would affect more than six million workers. For retail businesses and restaurants, more than two million workers would be affected. If current work practices stand, this could mean an increased cost of about $9.5 billion every year.
Another situation this proposed law would account for is after-hours work. Many American employees say they work on the weekend or after their shift on their company-issued devices. These work hours would also now be compensated.
In short, the new law would compel employers to pay better attention to employee rights issues, or face punishment. Anyone in Wisconsin whose employer has violated the Fair Labor Standards Act should contact an experienced attorney as soon as possible.
Source: CBS MoneyWatch, “Millions of U.S. workers could soon qualify for overtime pay,” Amy Langfield, June 10, 2015
