The common misconception that all salaried employees are not eligible for overtime is a hard one to overcome. Two factors determine whether a salaried manager is entitled to overtime: (1) the amount of the salary; and (2) the primary duties. Focusing on the first requirement – called the salary-basis test — several states raised the minimum threshold for a salaried employee to be eligible for overtime, effective 2021. Currently the federal minimum salary level is $35,568 annually. That means that “managers” making less than this amount satisfy the salary-basis test threshold and may be eligible for overtime, depending on their duties.
The Biden administration is seeking to raise this minimum threshold, which would affect workers nationwide. However, several states have raised the minimum threshold on their own, including Alaska, California, Colorado, Maine, New York, Pennsylvania, and Washington – all effective in 2021.
By increasing the salary for overtime-eligible employees, more workers are entitled to overtime. If you are a salaried employee making less than $35,568, or if you live in one of the states enumerated above, and believe that your duties are similar to those of the overtime-eligible, hourly employees with whom you work, please contact SLG.
Shavitz Law Group is here to help. If you have questions about whether your employer is violating federal requirements, or if you have any other employment concerns, please do not hesitate to call us for a free consultation at (800) 616-4000, or visit us at www.shavitzlaw.com for a free, no obligation review of your circumstances and consultation regarding your rights.
YOU EARNED IT, NOW LETS GO GET IT.
Gregg Shavitz, Shavitz Law Group, 951 Yamato Rd Ste 285, Boca Raton, FL and 800 3rd Ave, Suite 2800, New York, NY. Lawyers licensed in states including FL, NY, NJ, and TX. The choice of a lawyer is an important decision and should not be based on advertisements alone.
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Employers typically are permitted to take a “tip-credit” for tipped employees. This allows employers to pay employees who receive tips to pay less than the federal or state mandated minimum wage. However, employers cannot take advantage of the tip credit for all work performed by tipped employees.
For tipped employees – one of the groups who have been disproportionately negatively impacted by COVID-19 remedial measure – the law surrounding what is considered a “tip” is critical to their compensation. There is a growing trend for restaurants, cafes, and bars to charge customers mandatory gratuities (usually around 20%), similar to service fees charged in many European countries. The question then becomes whether these mandatory gratuities are considered tips for purposes of calculating minimum wages and overtime.
Workers in America are protected by both federal and state laws. January 1, 2021 is the effective date for several state laws directly affecting workers. At least 18 states enacted laws which impact workers, including California, Colorado, Connecticut, Georgia, Hawaii, Iowa, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nevada, New Jersey, New York, Oregon, Virginia and Washington.
Twenty states are raising their minimum wages in 2021. The federal minimum wage, which is regulated by the Fair Standards Labor Act, has been $7.25 since 2009. States can set their own minimum wage, which may – and often do — differ from the federal minimum wage.
Nine months into the COVID-19 pandemic, “working from home” or “WFH” is part of our everyday language. The virus seemed to come out of nowhere and forced many employers to rush into remote working arrangements. Because of this, many did not have time to prepare or to consider the legal ramifications of WFH.
On November 7, 2020, Joe Biden surpassed the 270 electoral votes necessary to become the 46th president of the United States. Before serving as Vice President in the Obama Administration, Biden also served for decades in the United States Senate, where he advanced the cause of workers. As president, Biden plans to make it easier for all workers to unionize and specifically supports educators being able to bargain for better pay and benefits, in addition to having a voice in decisions that affect their students. Biden also supports legislation raising the federal minimum wage to $15 per hour. Furthermore, Biden will seek to ban forcing employees to give up their rights to bring class action class in court by forcing them into arbitrations where they can only bring individual actions. He also has promised to have various departments within his administration – including the Department of Labor and the Justice Department – to aggressively pursue employers who violate federal employment laws. 
Amy Coney Barrett just assumed her position as an associate Justice of the United States Supreme Court, replacing the late Justice Ruth Bader Ginsburg. Prior to becoming the ninth seat on the Supreme Court, Justice Barrett served as a judge on the Seventh Circuit Court of Appeals. Many are concerned that if her tenure on the Seventh Circuit is indicative of how she might rule on employment issues, American workers’ rights may be in jeopardy. For example, Justice Barrett ruled that being called the “N” word did not violate Title VII’s prohibition on hostile work environments. In fact, Justice Barrett sided with employers and corporations over 75% of the time as a judge on the Seventh Circuit.
Ruth Bader Ginsburg served on the United State Supreme Court as an Associate Justice for 27 years, and thirteen years before on the United States Court of Appeals for the District of Columbia. Even before her years as a judge, Ginsburg was a trailblazing advocate for equal rights for women. 
In the age of COVID, many employers require employees to undergo a mandatory temperature check each day. These temperature checks typically occur either just inside – or even outside – the business premises to protect the health of everyone involved. Depending on the nature of the business, the time of day, and many other factors, these mandatory temperature checks can take upwards of 10 to 15 minutes. Because the temperature checks occur before employees clock in, they are unpaid for this time. This time adds up over the course of a week.