The recent Mayfield v. Department of Labor decision by the Fifth Circuit has major implications for employees across the country, particularly regarding overtime pay eligibility under the Fair Labor Standards Act (FLSA). At Mizrahi Kroub LLP, we are closely monitoring how this ruling will impact workers, especially as new salary thresholds come into effect. Here’s what this decision means for you, and how we can help ensure that your rights are protected.
Key Takeaways from Mayfield v. Department of Labor
The Mayfield decision upholds the Department of Labor’s (DOL) authority to set salary thresholds for employees classified as “exempt” under the FLSA. This ruling comes just ahead of a scheduled salary threshold increase, which will significantly raise the minimum weekly salary requirement for exempt employees in January 2025.
Current Thresholds: As of July 1, 2024, the salary threshold for exempt employees increased to $844 per week ($43,888 annually).
Upcoming Increase: On January 1, 2025, the threshold will rise again to $1,128 per week ($58,656 annually).
These salary thresholds are used to determine whether employees are eligible for overtime pay. If an employee does not meet the duties test and earns less than these salary levels, they may be entitled to overtime pay for any hours worked beyond 40 in a week.
How This Affects Employees
The new salary thresholds are expected to affect millions of employees, particularly those in executive, administrative, and professional roles (commonly referred to as “white-collar” jobs). For many employees, these changes will expand their eligibility for overtime pay. If your salary falls below the new threshold, you could qualify for overtime, even if you were previously considered exempt.
Overtime Eligibility: If you’re earning less than the new salary thresholds, your employer may need to reclassify your role as non-exempt, making you eligible for overtime pay.
Wage Adjustments: Employers may choose to increase salaries to meet the new threshold, especially for employees whose duties would otherwise qualify them for exempt status. If your employer does not adjust your salary, you could benefit from overtime protections.
Reevaluation of Duties: The Mayfield ruling also highlights the importance of the duties test for determining exemptions. Employers may need to reassess whether employees’ job duties align with their exempt status, especially as the salary threshold continues to rise. If your job duties do not meet the criteria for an exempt position, you may be entitled to overtime pay, regardless of your salary.
What Mizrahi Kroub LLP Can Do For You
At Mizrahi Kroub LLP we understand how important fair pay is to employees and how changes to the law can affect your earnings. Here’s how we can help:
Review Your Employment Status: We will analyze your current job classification and salary to determine if you qualify for overtime under the new thresholds. If your employer has misclassified your role as exempt when it shouldn’t, we’ll help you assert your rights.
Help You Recover Unpaid Overtime: If your employer fails to comply with the new salary requirements or misclassifies your job duties, you could be owed back pay for overtime. We’ll take action to recover the wages you’ve earned.
Legal Representation in Disputes: Should your employer resist paying the overtime you’re entitled to, or if they fail to adjust your classification based on the Mayfield ruling, we’ll fight for you in court or negotiations to ensure you’re treated fairly under the law.
Ensure Compliance with Future Thresholds: With further salary increases set for January 2025, many employers will need to make adjustments. We’ll help you navigate these changes and ensure your rights are protected.
Take Action Now to Protect Your Rights
Mizrahi Kroub LLP is here to help, our experienced employment lawyers will work with you to review your situation and ensure you’re paid fairly under the law. Contact our employment attorneys in New York to get started.
