New Overtime Pay Rule

This month, a new overtime rule means that over one million workers in the U.S. will see bigger paychecks in 2020. For the first time in 15 years, the Department of Labor has raised the salary eligibility threshold for overtime pay, translating into more money in Americans’ pockets.
Prior to the change, federal law provided that only workers who earned less $455 weekly, or $23,660 annually, were eligible to receive overtime pay. However, the recent changes means that many workers earning less than $684 weekly, or $35,568 annually, are now entitled to overtime when they work more than 40 hours per week.

So-called ‘white collar exempt employees’ must be paid a salary of at least the threshold while still meeting the same duties tests. Managers, professionals such as doctors or attorneys, administrative professionals like IT, finance or human resource employees, and outside salesmen who perform certain duties may now be eligible for overtime if their salaries do not meet the increased threshold. Consequently, the new rule is expected to prompt many employers to either reclassify over a million currently exempt workers to nonexempt status or raise their pay to the new threshold.

The new law, went into effect January 1, 2020. Although some states such as California have their own overtime laws, like many other states, Iowa follows provision of the federal Fair Labor Standards Act (FLSA) so the recent changes apply. Eligible employees in Iowa will be paid 1.5 times their regular pay rate for worked performed over 40 hours a week – a welcome change for many workers in the state.

Iowa Overtime Pay Dispute Lawyers

Contact an Experienced Wage and Hour Attorney for Immediate Help

If you have an overtime pay dispute or any wage and hour dispute with your Iowa employer, contact the Des Moines employment law offices of Stoltze & Stoltze for immediate assistance at515.989.8529.