SAN ANTONIO — A federal judge with the U.S. District Court in the Eastern District of Texas recently handed down a stunning decision, ruling the Department of Labor overstepped its authority to raise the overtime pay threshold to $47,500. The challenge to the law, which was set to take effect on December 1st of this year, was brought forth by 22 states and another 50 large businesses in a separate legal action.
Currently, employers must pay overtime to employees making less than $24,000 a year performing acceptable duties under the Fair Labor Standards Act (FLSA), a number that equates to under $500 per week for jobs that may require 60 hours of work per week. With President Obama’s administration coming to a close and a more “business friendly” President-Elect Trump coming into office, the economic future is uncertain for many workers.
The implementation of the new overtime pay law would have been a substantial leap forward for many low wage workers earning a weekly salary. In 1975, overtime pay laws covered over 60% of workers in the country but only applies to around 7% today.
The judge overseeing the case ruled the Labor Department overstepped its statutory authority bestowed by Congress when it included automatic three-year raises to the overtime pay threshold. The plaintiffs challenging the law argued the law would circumvent the rule-making process required to implement such a drastic change to wage laws.
Federal Overtime Pay Laws
Under the Fair Labor Standards Act, non overtime exempt employees cannot earn less than $23,660 and must earn at least minimum wage for all the hours spent on the job. Often times, companies will improperly classify workers as overtime exempt by giving titles like “manager” or “supervisor” when the employee does not actually perform necessary duties to qualify for such a designation.
In these situations, wage theft victim can hold their employers accountable by filing unpaid overtime lawsuits to recover their hard earned pay. Furthermore, these claims can recover interest on the unpaid wages, attorneys’ fees, and other damages the court may see fit to award.
Unpaid Overtime Lawsuits
Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you feel that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.
Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.