Through the Fair Labor Standards Act (FLSA), Congress enacted laws which set minimum wage and overtime pay requirements for employers. The Department of Labor is authorized to issue further guidance about the law, to implement additional rules concerning overtime and minimum wage, and to enforce compliance with the rules and regulations. On September 24, 2019, the United States Department of Labor issued a final rule concerning updates to the overtime rules existing for the past 15 years. Today’s Long Island employment law blog discusses these changes.
Under the FLSA, employers must pay minimum wage to employees. Currently, the federal minimum wage is $7.25 per hour. States may set higher rates, though. For instance, in New York, the minimum wage rate varies depending on county, but it is at least $11.10 per hour and can be as high as $15 per hour in New York City (as of 2019).
The FLSA also requires that employers pay overtime to employees. Overtime pay is one and one half times the employee’s regular rate of pay and kicks in when the employee works more than 40 hours in a workweek. But, not at all employees are entitled to overtime pay. The FLSA classifies employees as either exempt or non-exempt. Exempt employees are not entitled to overtime pay and typically are paid by salary, which remains they receive the same pay no matter how many hours the employee works. Non-exempt employees are typically paid on an hourly basis (or commission) and must be paid overtime hours.