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Federal Mandated Posters

September 16th, 2006 Posted by Emily

According to Federal mandated posters, a new overtime law went into effect in late August, 2004. It changed some of the U.S. Federal rules and regulations on older federal mandated posters that enforce an employee’s right to overtime pay. Although people are calling these changes the new overtime law, lawmakers actually modified the overtime provisions of a very old Federal law called the Fair Labor Standards Act (FLSA). The FLSA was enacted in 1938, and covers minimum wage and child labor in addition to overtime pay.

Below is a summary of the changes to the FLSA rules and regulations that comprise the so-called new overtime law. However, at this writing the new law is still under debate, because lobbying groups such as unions are fighting it.

The new overtime law didn’t increase the overtime pay rate as some workers thought it might. Rather it increased the minimum salary employees must earn, for employers to legally classify them not eligible for overtime pay. Consequently, lower-paid employees who were not eligible for overtime pay under the old law are now eligible under the new law.

Meanwhile, the minimum overtime pay rate under the new overtime law is still the same as it was under the old law. Employers must pay overtime at a rate of one and one-half times an employee’s regular pay, for hours worked in excess of 40 per workweek. For example, if you normally earn $20 per hour and are eligible for overtime pay, then your employer must pay you overtime of at least $30 for each hour you work in excess of 40 in a workweek.

More, such as double-time, is still a matter of agreement between employees and employers under the new overtime law, the same as it was under the old law. However, because the FLSA sets only the minimum standards, your state or locality might have an overtime law that enhances the Federal standards.