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Labor Law Modification Faces Delay

Bill questioning overtime policies moves to Senate.

Big Picture

The modification to the Fair Labor Standards Act (FLSA) passed in May has been called into question by the US House of Representatives. The motion for a six-month delay of the executive order, which would double the salary threshold of employees eligible for overtime pay, was passed by the House in September and will move to the Senate; members will return from recess after the presidential election.

As of now, the FLSA adjustment stands to take effect on December 1. Companies will be required to pay overtime (one-and-a-half times the hourly rate) for employees earning less than $47,476 annually if they work more than 40 hours in a workweek. This salary threshold is roughly twice that of the current-standing law and will now affect roughly 4 million American workers.

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