two hands2White-Collar Overtime

As of December 1, 2016, a change to the Federal Labor Standards Act (FLSA) regulations increases the number of employees who must be paid extra for overtime work. The Department of Labor estimates that 73,000 white-collar, salaried workers in Colorado will newly qualify for overtime pay. If you think the new rule might affect you, it could be worth consulting an employment attorney to make certain that the compensation and classification policies at your workplace are in compliance.

When the rule changes, some employees who have been exempt from the law requiring overtime pay will no longer be exempt. The exemption is based partly on how much is earned by people who do certain kinds of executive, administrative, professional, or computer work. The old rule exempted people who earn more than $23,660 a year—in those particular jobs—from earning extra when they work more than 40 hours per week. Under the new rule, employees in these positions must earn just over twice that, or $47,476, before they are exempt from the requirement to earn one-and-a-half times their pay for overtime work.

For employers who defy the FLSA, the Department of Labor can levy fines up to $10,000; impose penalties up to $1,100 per violation; restore employees’ back pay; and award employees liquidated damages equal to their back pay.