Alert - The Department of Labor's Updated Overtime Regulations
Effective December 1, 2016, the United States Department of Labor will revise the federal regulations regarding payment of overtime pay to workers who work in excess of forty (40) hours per week. The revision will affect an estimated 4.2 million workers, with a concomitant impact upon businesses and other employers. The following is a guideline to assist employers and employees in their assessment and determination of whether, and the extent to which, they will be affected. Please note that many states, including California, have their own regulations regarding overtime pay. 1. Background In order to comprehend the rationale underlying the revisions, it is necessary to understand this issue from the Government’s perspective. Congress passed the Fair Labor Standards Act in 1938 (during...