All About State Overtime Laws At Business

In addition to federal laws, employers should be aware of how state laws affect their policies daftar judi slot. The federal overtime protection rules are just a minimum, and some states go above and beyond them. It’s as critical to acquaint yourself with state law as with federal law, and failure to do so could result in penalties at the state level even if you’re compliant with federal law bandar judi slot.

The following states have overtime laws that supersede the FLSA:

Alaska: Nevada
California: New York
Colorado: Pennsylvania
Kansas: Vermont
Maryland (only in certain industries): Washington
Michigan: West Virginia
Minnesota

In all other states, employers must follow the FLSA.

Federal overtime law changes
Federal overtime laws have changed in a few ways since 2016.

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The Obama administration
Further complicating the overtime picture is a series of proposed rule changes that were raised, scrapped and then raised again. In 2016, the rules governing overtime protections seemed like they were about to change, but the rule change was scrapped at the eleventh hour.

In 2016, the Obama administration’s DOL appeared ready to change the rules for employee exemptions. These changes would have tightened the definitions of each classification and raised the pay threshold to $913 per week, or a salary of $47,476. That change was expected to extend overtime protections to 4.2 million additional workers compared with the current regulations. Many businesses adjusted their policies in preparation for the change, which included shifting salaried employees to an hourly wage, but the rule change was ultimately scrapped after the Trump administration took office.

The Trump administration
In 2019, the Trump administration proposed an overtime rule change that would have set the income cutoff at $679 per week starting in 2020. This rule would have extended overtime protections to about 1 million more workers, leaving the status of workers making more than $679 per week unchanged.

However, one report found that this rule would exclude 8 million employees from overtime pay whom the Obama-era rules would have included. The proposed rule change would not extend to first responders, nurses or construction workers either.

Ultimately, the Trump administration’s proposed changes were implemented with slightly different numbers. In September 2019, the DOL formally raised the maximum salary at which all workers must receive overtime to $684 per week ($35,568 per year) from its prior $455 a week. This change went into effect in 2020 and purportedly did, as expected, make 1 million more employees eligible for overtime pay.