Unfortunately, the new overtime rules are likely back, according to the Biden Administration. Companies may recall that these changes have surfaced and re-surfaced a few times dating back to 2016. Now is a good time for companies to take a proactive approach to preparation and get ahead of this change. Here are the four things that you need to know about the anticipated legal changes.

1. Know the Current Law. Under the current law, the default rule is to pay employees an hourly rate for the first 40 hours each week and 1.5 times that rate when they exceed 40 hours, i.e. “overtime.” However, employees can be “exempt” from the default rule of paying by the hour if: (1) their job duties meet the statutory requirements for executive, administrative, professional, outside sales or computer employees; and (2) they are paid at least $35,568 per year ($684 per week).

Adam Bartrom is a partner the Labor and Employment Department of Barnes & Thornburg LLP’s Fort Wayne office. He can be reached at adam.bartrom@btlaw.com or 260-425-4629.

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