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Law360 Covers Berke-Weiss Law's Successful Defeat of Motion to Dismiss in Unpaid Wages Case

At the federal level, overtime for salaried employees has been limited to those making up to $35,500 per year. But in August, the Department of Labor under acting Secretary Julie Su has proposed a change to that cutoff, calling for an increase to salaries up to $55,000 per year. The potential rule change could affect over 3.5 million working Americans. 

Automatic eligibility for time-and-a-half has been a focus of US administrations for nearly a decade. The Obama administration proposed a sizable increase only for a federal judge to strike down the change, stating that the DoL did not have the authority to make such a substantial increase in the cutoff, which had been at $23,500. During the Trump administration, the DoL was able to increase the amount to its current $35,500 limit.

One compelling reason for the DoL to pursue this is that many employers avoid overtime obligations by misclassifying workers as managers or illegally prevent employees from accessing automatic overtime by setting worker salaries just north of the current limit. 

The Department of Labor estimates that the rule change will see a transfer of more than $1 billion from employers to workers in its first year. Several large industries, including hospitality and retail have begun fighting back against the proposal, threatening to hire or reclassify existing workers as part-timers to avoid paying overtime.

While this will not affect New York State labor law, where the automatic eligibility is already roughly in line with the DoL’s proposed changes, it is interesting to see another instance of the Biden administration's quest to bend labor law back toward the benefit of workers.

Law360 Quotes Senior Associate Alex Berke in Article Covering Gov. Hochul’s Recent Proposal to Initiate Prenatal Leave

January 25, 2024
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Berke-Weiss Law in the News
Senior Associate Alex Berke is quoted by Law360 in an article about proposed prenatal leave in New York.

Senior Associate Alex Berke Quoted in Recent Article Published by the American Bar Association

December 18, 2023
Berke-Weiss Law in the News
Senior Associate Alex Berke shares thoughts and advice in recent article published by the ABA.

Berke-Weiss Law Represents Plaintiff in an Adult Survivors Act Lawsuit Covered By NPR

December 15, 2023
Berke-Weiss Law in the News
NPR recently covered a complaint filed in the NYS Supreme Court with Berke-Weiss Law as counsel for the plaintiff.

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