Recently, the U.S. House of Representatives passed a law that allows private-sector employers to allow employees to earn Paid Time Off (PTO) instead of overtime pay. H.R. 1180, the Working Families Flexibility Act of 2017, amends the Fair Labor Standards Act of 1938. Under the act, an employee may receive “compensatory time off at a rate not less than one and one-half hours” for each hour of work that overtime pay is required. This means that, instead of receiving overtime pay in their next paycheck, an employee may earn PTO that they may use at a later date that is approved by the employer.
Recently, the New York Post reported that Bloomberg, a financial media company, has agreed to pay $3.2 million in a settlement for overtime wages. The Manhattan federal class-action lawsuit was initiated by customer service employees who claimed they were not compensated for overtime.
The popular professional social media networking service, LinkedIn, has recently agreed to pay almost $6 million in unpaid wages and damages to 359 current and former employees.
According to the U.S. Department of Labor, an investigation found LinkedIn Corp. in violation of overtime and record-keeping rules pursuant to the federal Fair Labor Standards Act (FLSA). It said the violations occurred at company branches in California, Illinois, Nebraska and New York.
In a combined effort to ensure overtime protections for low- and mid-wage salaried workers, Senator Tom Harkin (D-IA), Chairman of the Senate Health, Education, Labor, and Pensions (HELP) Committee, along with eight Senate officials, recently introduced the Restoring Overtime Pay for Working Americans Act.
Presently, the Fair Labor Standards Act (FLSA) guarantees a minimum wage and overtime pay for private-sector U.S. workers. However, many workers are considered “exempt” from the law, partly because of a salary threshold, $23,660 per year or $455 per week, which is specifically directed at managers and “professional” employees.