Hadsell Stormer Renick & Dai LLP
Free Consultations 626-381-9261

More salaried employees to be eligible for overtime pay

While the summer of 2016 draws near, we are nearly one year removed from the historic increase of the federal minimum wage. Since that time many states and jurisdictions have increased the working minimum wage (some jurisdictions to $15.00/hr), but the troubles suffered by low level salaried employees have largely been ignored. Because of this, some managers in retail establishments and restaurants made less per hour than their hourly counterparts because they were barred from collecting overtime pay.

As we noted in a prior post, this change was coming.  The U.S. Department of Labor finalized its plan that would allow more salaried employees to receive overtime pay. Essentially, the threshold for salaried employees to receive overtime pay will increase to $47,476. The previous threshold was $23,336.

Nearly five million workers will be affected by this change. As we alluded to earlier, managers and other administrative assistants toiling 50 to 70 hours per week. Moreover, the number of workers eligible for overtime hours has fallen from 62 percent in 1975 to merely 7 percent today. The new rule may raise the percentage of eligible workers to 35 percent.  

For some employees, it means that they may have to be reclassified in order to take advantage of the monetary benefits. The new rule is supposed to take effect on December 1. So it remains to be seen how employers will react to this change.

If you have questions about you this will affect you as an employee, an experienced lawyer can advise you. 

No Comments

Leave a comment
Comment Information
    • The National Trial Lawyers | Top 100 Trial Lawyers
    • Top Listed In Best Lawyers | The World's Premier Guide
    • Americas Top 100 2017 | Criminal Defense Attorneys
    • AV Preeminent Martindale-Hubbell Lawyer Ratings
    • Super Lawyers | Rising Stars 2018
    • Best Lawyers US News 2016
    • The National Trial Lawyers | Top 40 Under 40
    • proud fellow of american bar foundation
    • 2018 Top 100 Lawyer ASLA
    • SuperLawyers Rising Stars 2018

Have You Been Victimized?

Speak to an attorney who will fight for you.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Email Us For A Response

Pasadena Office
128 N. Fair Oaks Avenue, Suite 204
Pasadena, CA 91103

Phone: 626-585-9600
Fax: 626-577-7079
Map & Directions

Downtown Los Angeles Office (Legal Fund)
250 1st Street, Suite 1201
Los Angeles, CA 90012

Phone: 213-785-6999
Map & Directions

Free Consultations

Tel: 626-381-9261
Toll-free: 866-457-2590