On Thursday, March 13, President Obama is expected to ask the Labor Department to issue comprehensive rule changes with regard to overtime pay for certain workers. This executive order would amend provisions of the Fair Labor Standards Act (FLSA) to include professions that were heretofore considered exempt from the law. It is anticipated that those who work as fast food shift supervisors, office workers and convenience store managers are examples some of those that will be affected.
Another provision of the law might be affected as well. Presently, salaried employees who earn less than $455 per week are subject to overtime pay. It is widely expected that this threshold will be changed as well. Back in 2004, President Bush increased the threshold to that amount from $250. If inflation were to be applied to the current figure, the threshold could be increased to $553.
The Labor Department takes violations of the FLSA very seriously. In addition to penalties and potential prosecution, underpaid workers can recover back pay for up to two years, three if it is deemed that the violation was willful.
While it remains to be seen which provisions will be affected the President’s decision, this news should serve as a reminder to all businesses to revisit their classification of workers under the current law to ensure proper compliance.
If you have questions or would like to learn more, please reach out to Genesis HR Solutions at AskUs@genesishrsolutions.com or 800-367-8367.
Genesis HR Solutions is the premier PEO provider for Massachusetts based businesses.
