Boston Businesses & Beyond, Beware – Overtime Laws Are Changing Again!

Boston-based businesses and beyond should be aware, be very aware – the federal government is changing overtime laws again!

Revisions to what is titled the Federal Labor Standards Act (or FLSA) are expected to take effect by the end of next year. For small and mid-sized employers today, that may mean rethinking that new hire, preparing to cost cut in other areas, or raising prices now or in the near future.

The changes could be drastic, and experts predict there will be 2 main changes to the law (1) an increase in the minimum weekly salary threshold to qualify for overtime exemption and (2) a stricter ‘division of labor’ test where employees classified as executives, administrators and professionals would need to spend at least 50% of their time on such duties and responsibilities.

These changes could result in big increases in labor/employment-based overhead, but make no mistake – class action plaintiff lawyers will pounce on companies that fail to comply.

The last time the minimum salary threshold was raised in 2004, it almost doubled from $250 to $455 a week. If a salaried restaurant manager responsible for hiring, firing and employee evaluations spends only 40% of his/her time performing those tasks, under the revised FLSA law he/she may be entitled to overtime — and the employer subject to big penalties for failing to pay it!

There are a few solutions an employer can implement to avoid liability for failing to comply with these anticipated revisions to the overtime rules, and the Boston Business Lawyers at The Jacobs Law can help. Our favorite saying these days is “an ounce of prevention is worth a pound cure!” Ask any of the employers I represent in litigation over unpaid overtime if they would have spent an ‘ounce’ on an attorney to ensure they were in compliance with the Federal and Massachusetts wage and salary / overtime laws, and the response would be a resounding “ABSOLUTELY!”.

Has a current or former employee or independent contractor recently demanded a copy of their “personnel file” or served you and your business with a complaint for unpaid overtime or misclassification as an independent contractor. You need {an attorney, a lawyer} immediately! A Business Litigation {Lawyer, Attorney} at The Jacobs Law LLC can represent you and your business in defense of misclassification, overtime and other Massachusetts wage & salary litigation or advise your business on steps you can take to minimize your risk of litigation over these issues. Contact a Boston Business Litigation {Attorney, Lawyer} at The Jacobs Law LLC today!