If you are an employee working in a managerial, administrative, or professional position, you likely know two things: 1) your employer can pay you a salary, and 2) when you earn a salary, you don’t get paid for overtime. What you may not know is that the Department of Labor sets a minimum salary that an employer must pay in order to avoid having to pay you overtime. Currently, that minimum is only $23,660 annually. See 29 CFR Part 541. However, Department of Labor just increased that minimum to $47,476, effective December 1, 2016. See Department of Labor’s Summary of the Final Rule.

What this means is that formerly salaried employees earning less than $47,476 will have to be paid hourly and be entitled to overtime as of December 1, 2016. For many employees, including low-level managers at fast food chains, retail stores, and restaurants, this change should translate into a tremendous pay boost. For employers, this new rule could be a huge headache.

If you are an employee and believe that you are being unfairly denied overtime wages, you should call my firm. If your employer is violating the Fair Labor Standards Act or the Massachusetts Wage Act, you may be entitled to double or triple your back pay, and in some cases, attorneys fees.

If you are an employer and have questions about how these new regulations will affect your business, you should call my firm. Federal case law makes clear that if the employer makes a good faith effort to comply with the Fair Labor Standards Act by obtaining the advice of counsel, the employer can avoid paying damages. Make sure you are protected.