New federal overtime law in effect across U.S. that could impact Louisiana workers

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A new rule that was passed back in September is now eligible for more than a  million people in the U.S. and that could include workers in Louisiana.

The Fair Labor Standards Act updated their rule and now workers will be entitled to minimum wage and overtime pay as a result of the increase to the standard salary level.

Executive, administrative, or professional employees are exempt from the FLSA’s minimum wage and overtime pay requirements and allows employers to count a portion of certain bonuses (and commissions) towards meeting the salary level.

In the final rule, the Department is:

  • raising the “standard salary level” from the currently enforced level of $455 to $684 per week (equivalent to $35,568 per year for a full-year worker);
  • raising the total annual compensation level for “highly compensated employees (HCE)” from the currently-enforced level of $100,000 to $107,432 per year;
  • allowing employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10 percent of the standard salary level, in recognition of evolving pay practices; and
  • revising the special salary levels for workers in U.S. territories and in the motion picture industry.

Under the old law, employees with a salary below $455 per week must be paid overtime if they work more than 40 hours per week.

Workers making at least this salary level may be eligible for overtime based on their job duties.

This is the first time the rule has been updated in more than 15 years that was first set in 2004.

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