Executive Order Expands Pay Rules Under the Fair Labor Standards Act
A move that will expand contractors’ treatment of uncompensated overtime, an executive order has been issued that increases the pool of workers eligible for overtime pay under the Fair Labor Standards Act (FLSA). Though salaried employees are generally exempt from overtime pay requirements there is a threshold below which salaried employees must be paid overtime. Previously, the FLSA guaranteed salaried workers overtime pay if they made less than about $23,000 per year. However, pending final rules, the new executive order is estimated to increase the threshold to approximately $50,440 per year.
