Labor Department to Change FLSA Overtime Rules

The Chicago overtime violations lawyers at Markoff Leinberger have taken note that President Obama has directed his Secretary of Labor to overhaul the Fair Labor Standards Act in such a way as to make it more difficult for employers to claim the managerial exemption to existing overtime requirements.

Under the FLSA, employers must pay employees one and a half times their average pay if they are required to work more than 40 hours in a week. However, “executive” or “managerial” employees are exempt from this regulation.

As we’ve written before, “managers” are those who make at least $455 a week or perform managerial duties. As the White House pointed out in the fact sheet they issued to accompany the presidential directive, this puts the managerial threshold well below the poverty line.

The President’s directive merely ordered the Secretary of Labor to review FLSA’s overtime rules and change them in ways that make them easier to understand while protecting workers’ rights. Employers too often mis-classify employees as managers in an effort to escape overtime rules.

Our overtime violations lawyers will keep a close eye on any changes to FLSA, which have to be completed and then navigate a lengthy review and comment process before they take effect.

If you’re a Chicago, Illinois-area resident and have need of an experienced overtime violations lawyer, please contact Markoff Leinberger today for a free consultation.


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