Wage and Hour
2023 Recap
USDOL Proposes Significant Hike to Exempt Salary Threshold Employers need to review their pay practices and plan for potential changes in light of the Labor Department’s August proposal to raise the salary threshold for exempt employees, which could make more of your employees eligible for overtime premiums. The USDOL intends to raise the exempt salary threshold from $684 per week to at least $1,059, meaning employees would need to earn $55,068 or more per year to be exempt from OT pay. Highly Paid Employees Could Be Entitled to Overtime Pay High-earning workers making more than $200,000 a year might be eligible for overtime pay thanks to a Supreme Court ruling from February. The Justices said an oil rig worker was eligible for overtime pay because he was not paid on a “salary basis.” The decision is a wake- up call for all employers to review their OT exemptions to ensure they are compliant with applicable federal and state requirements. Focus on State Wage Payment Laws State and local wage payment laws continued to challenge employers as they endeavored to comply. Many states have minimum wage requirements that are significantly higher than the federal mandate. Some states also have very particular rules on notice, pay statements, and frequency, which have led to an abundance of litigation, including double and triple damages.
Kathleen Caminiti Partner New Jersey/New York kcaminiti@fisherphillips.com
J. Hagood Tighe Partner Columbia htighe@fisherphillips.com
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