The U.S. Department of Labor Wage and Hour Division has obtained $165,379 in back wages and damages from a regional health care management company on behalf of 594 workers whose overtime rates were improperly calculated.
Wage and hour laws are extremely important to employees. The take home pay of workers throughout the country is governed by these types of laws, and a simple mistake can result in a huge loss for employees.
Led by Texas and Nevada, 21 states and the U.S. Chamber of Commerce are challenging the Department of Labor's new overtime rule scheduled to take effect on December 1. Created at the urging of the Obama administration, the DOL regulation raises the overtime floor for salaried employees from $23,660 to $47,476, meaning that all employees earning less than the overtime threshold (which will cover approximately 4.2 million workers previously exempt from earning overtime) will be eligible to receive overtime pay. The rule also sets guidelines that would help clarify which employees qualify for an exemption to overtime rules under the Fair Labor Standards Act (FLSA) and provides for automatic increases to the salary threshold every three years.