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Overtime Protection May Be Extended to Workers Making Up to $969 per Week

A proposed Department of Labor rule change, which should go into effect in 2016, will raise the income threshold for overtime pay. Currently, employers are required to pay workers who make less than $23,660 a year, or $455 a week, time-and-a-half pay for hours worked over forty (40) hours per week. As a result, it is estimated that over 14 million low wage earning workers are denied overtime solely on the basis of their salary. Under the new rule, employees earning less than $50,440, or $970 a week, will qualify for overtime wages.

Current Overtime Threshold Below Poverty Level

In 1975, 65% of salaried workers were below the overtime salary threshold, not because their salaries were terribly low but because the value of the threshold was higher, by 2013, only 11% of workers qualified for overtime protection because of their salary. Yet, because the salary threshold had only been updated once since 1975, it has not kept pace with inflation. As a result, today’s salary threshold is below the poverty level for a family of four.

The new overtime rule will protect workers who are not currently entitled to overtime pay despite working long hours every week simply because the maximum pay threshold is so low. The proposed change, by increasing the salary threshold, will entitle millions of workers to pay consisting of 1.5 times their normal wage for hours worked in excess of 40 hours a week. Therefore, once enacted many workers classified by their employers as administrators, professionals or managers will be entitled to overtime pay as long as their salaries fall below the new $50,440 yearly salary threshold.

If you believe that you have been wrongfully denied overtime pay, please call the New Jersey employment attorneys of Lenzo & Reis, LLC, at (973) 845-9922 or email us today for a free case evaluation.

Client Reviews
★★★★★
"Professional and Knowledgeable Attorney. At what was supposed to be the highest point in my career suddenly became the most harassing and lowest point of my career and I was passed over for a promotion. Not because the other person was more qualified than I was, but because I followed the law and did the right thing and the people I worked for did not like that. After researching several attorneys, my wife and I found Claudia, and the decision to retain her was the best decision we ever made. After explaining our case to Claudia, we found that she was not only extremely professional but a very caring human being. Throughout the entire process of our case, Claudia was there with us every step of the way. She explained every single proceeding that we had to go through and guided us, not only as a professional attorney in and out of court, but personally as a caring and understanding person. Because of her extensive working knowledge of employment and labor laws, Claudia was able to successfully resolve our case. My wife and I will always be extremely grateful for Claudia’s hard work and dedication, and we highly recommend Claudia Reis to anyone seeking an attorney who practices in employment and labor laws." John
★★★★★
"Professionalism, integrity, and determination. Outstanding representation! Chris Lenzo did an outstanding job in my employment discrimination case. He responded to my questions in a timely fashion, provided clear communication through each step of the process, and handled my case in an honest and straight forward manner. Chris’s expertise in employment law along with his hard work ensured justice would prevail in my case and got me the compensation I deserved. Likewise, Chris’s law firm staff was professional, courteous, organized, and effective. I highly recommend Chirs Lenzo’s firm to anyone with an employment legal matter in New Jersey or New York." Sofia
★★★★★
"Remarkable professional. I have worked with Ms. Reis and her firm for the past three years. During the consultation process, you will immediately experience her compassion as she offers suggestions and guides you through the difficult situation you are dealing with. Her attention to detail, timely follow up and candid manner ensured me that I was well-protected and represented. Ms. Reis always went above and beyond to protect me legally. She is a very strong and tough (when necessary) advocate for the individual she represents. Her support staff is equally diligent. I would recommend her without reservation." A.M.