Major Change in the Law Entitles More Employees to Overtime Pay

Major Change in the Law Entitles More Employees to Overtime Pay

The United States Department of Labor (“DOL”) announced changes to the standards used to determine which employees are entitled to overtime compensation. Specifically, the threshold to be considered eligible for overtime pay will increase from $26,660 to $47,476 annually.[1] Consequently, employees who earn less than $47,476 annually may qualify for overtime compensation.[2]

However, not all employees who earn less than $47,476 will be entitled to overtime pay. The DOL exempts certain employees from overtime pay requirements if they perform certain “executive”, “administrative”, or “professional” duties for an employer even if they make less than $47,476 annually.[3]

However, even if your employer states that your job duties fall under one of those exemptions, your position may not be exempt under the new overtime pay qualifier. These exemptions have very specific definitions according to the DOL, and it may be in your interest to have an attorney review whether or not you qualify for overtime pay.

Annual income is not the only factor to consider in determining who may be eligible for overtime. However, this new law will affect approximately 194,000 employees across Illinois as of December 1, 2016. If you have questions about whether you qualify for overtime pay, contact an employment law attorney to discuss your concerns.


[2] This new guideline does not affect the minimum wage.