Overtime pay rules will be changed by an executive order to be issued by President Obama. There are two badly-needed changes: (1) increasing the minimum salary applicable to an overtime exemption which is presently $455 per week; and, (2) narrowing the "administrative" exemption which is widely abused and misapplied to persons with the job titles of manager or supervisor. The minimum salary level was last raised by the second President Bush in 2004. The New York Times reports on the proposed changes: Obama Will Seek Broad Expansion of Overtime Pay.
The "administrative exemption" has been widely misapplied and resulted in numerous class actions and large settlements including the following: Lowe's HR Managers Suit for Overtime, "Salary" Workers Settle Overtime Suit, Rite-Aid Store Managers Settle Overtime Suit for $20.9 Million, Misclassification of Managers as Exempt Is Basis for Overtime Suit Against AT & T, Store Managers at Harbor Freight Sue for Unpaid Overtime, Assistant Managers Sue Dollar Tree for Overtime & Minimum Wages, Claiming They Were Misclassified Managers Sue for Overtime and Assistant Managers Sue Home Depot for Overtime. One result of these abuses is soaring corporate profits and stagnating wages and incomes for American workers and families; that's good for nobody and contrary to just basic fairness.
Lexington, Kentucky wages and overtime lawyer Robert Abell represents individuals and employees recover the wages and overtime they've earned but not been paid; contact him at 859-254-7076.
