President to Direct Overtime Pay Changes

By: Sally Griffith Cimini, Esq.

This week, President Barack Obama is expected to direct the U.S. Department of Labor to strengthen overtime pay protections for millions of salaried exempt workers, such as fast-food shift supervisors or convenience store managers, who may be expected to work more than 40 hours a week without receiving overtime pay. Currently, salaried workers who make more than $455 per week and meet certain duties tests established under the Fair Labor Standards Act (“FLSA”) are exempt from receiving overtime compensation. The proposed change follows the President’s February 12, 2014 Executive Order raising the minimum wage to $10.10 per hour for workers working under new and renegotiated federal contracts starting on January 1, 2015. Once the U.S. Department of Labor proposes changes to the overtime regulations in compliance with this directive, the proposed changes will be subject to a public comment period. The directive is likely to face opposition from Republicans and many employers.  Stay tuned for more details.

Sally Griffith Cimini and is a Partner and Chair of the firm’s Employment Practice Group. She is based in the Pittsburgh office and can be reached at 412.261.1600 or scimini@leechtishman.com.

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