The update to the Wages and Fair Labor Standards Act that took effect in mid-January removed much of the uncertainty that troubled employers when they calculated overtime pay for hourly workers. This first change in 50 years should result in fewer lawsuits because the rules are now much clearer.

The U.S. Department of Labor has identified forms of compensation to be excluded when employers compute hourly wages. They do not apply to salaried or otherwise exempt workers. However, in the instance of a class action lawsuit in respect to a misclassified exempt worker, the new rule would apply.

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