News (All)

U.S. Department of Labor Announces New Rule Impacting Overtime Pay

Posted: May 22nd, 2024

By: Meagan Nolan, Esq. email


The change to the Fair Labor Standards Act is expected to result in the transfer of approximately $1.5 billion from employers to employees annually.

A new rule from the United States Department of Labor is set to bring pay changes to millions of salaried workers this summer. Last month, the department announced a new final rule under the Fair Labor Standards Act (FLSA) which expands overtime protections to lower-salaried employees.[1]

First, some background: the FLSA requires covered employers to provide overtime pay to most employees, who are referred to as “non-exempt.” Certain employees, including bona fide executive, administrative, or professional employees, are exempt from overtime requirements and are not entitled to overtime pay.[2] This exemption is commonly referred to as the “white-collar” or “EAP” (executive, administrative, or professional) exemption.

Notably, job titles are not determinative of an employee’s exemption status.[3] The Department of Labor has established a three-prong test, subject to certain exceptions, to determine whether an employee is exempt. Pursuant to the test and as a general matter, an employee is deemed “exempt” if he or she is: (1) paid a salary; (2) the salary is not less than the minimum salary threshold; and (3) the employee performs primarily executive, administrative or professional duties.[4]

The new rule targets the second prong of this test. Specifically, the rule will increase the present salary threshold required to exempt certain employees from the FLSA’s overtime requirements. According to the U.S. Department of Labor, the salary threshold will increase from the equivalent of an annual salary of $35,568[5] to $43,888 on July 1, 2024.[6] Therefore, certain employees making up to $43,888 annually will no longer fall within the purview of the EAP exemption.[7] Such employees will be entitled to receive one-and-a-half times their pay if they work more than 40 hours per week.[8]

Beginning on January 1, 2025, even more workers will be impacted when the annual salary threshold increases to $58,656.

The Economic Policy Institute estimates that the new rule will result in the transfer of approximately $1.5 billion from employers to employees annually.[9]

[1] Biden-Harris administration finalizes rule to increase compensation thresholds for overtime eligibility, expanding protections for millions of workers | U.S. Department of Labor (dol.gov)

[2] https://blog.dol.gov/2024/04/23/what-the-new-overtime-rule-means-for-workers

[3] https://www.dol.gov/agencies/whd/fact-sheets/17a-overtime#footnoteOvertime

[4] See fn. 2.

[5] See fn. 1.

[6] See fn. 1.

[7] See fn. 1.

[8] Biden administration expands overtime pay to cover 4.3 million more workers. Here’s who qualifies. – CBS News

[9] Explaining the Department of Labor’s new overtime rule that will benefit 4.3 million workers | Economic Policy Institute (epi.org)

The information contained in this article is provided for informational purposes only and is not and should not be construed as legal advice on any subject matter. The firm provides legal advice and other services only to persons or entities with which it has established an attorney-client relationship.

McCormick Elected President of the Suffolk County Bar Association

Posted: May 7th, 2024

Campolo, Middleton & McCormick is thrilled to announce that Senior Partner Patrick McCormick has been elected and will be inducted in June as President of the Suffolk County Bar Association for a one-year term. As President, McCormick will take leadership of the bar association, positioning him as one of the most prominent advocates in New York State for the legal community.

This election is the culmination of numerous professional milestones for McCormick, who has previously served as President-Elect, First and Second Vice President, Secretary, and Treasurer of the SCBA Board of Directors, as well as Dean of the Suffolk Academy of Law. A recognized leader in the community, this election highlights McCormick’s long-standing dedication to the SCBA, tremendous support from his colleagues across the legal profession, and his advocacy for the New York legal community. McCormick will be sworn in at the SCBA’s 116th Annual Installation Dinner at Flowerfield in St. James, New York on June 6, 2024.

McCormick chairs the Commercial Litigation and Appellate Practice Group at CMM, having built a reputation as a strategic and talented appellate attorney over three decades in the field. Representing clients in civil and criminal matters in both federal and state courts, he has argued numerous appeals, including at the New York State Court of Appeals, the state’s highest court. McCormick is also a respected trial attorney, litigating all types of complex commercial and real estate matters. He represents national commercial shopping centers, retailers, and publicly traded home builders in commercial and residential landlord-tenant matters. McCormick has been recognized by his peers with the Martindale-Hubbell AV Preeminent® rating for ethical standards and legal ability, the highest possible rating from the most recognized legal directory and resource. 

DeMaio Elected as a Director of the Suffolk County Bar Association

Posted: May 7th, 2024

Campolo, Middleton & McCormick is proud to announce that Senior Associate Richard DeMaio has been elected as a member of the Board of Directors of the Suffolk County Bar Association. He will be sworn in by Hon. Helen Voutsinas, Associate Justice of the Appellate Division, Second Department, at the SCBA’s 116th Annual Installation Dinner on June 6, 2024.

DeMaio has been actively involved in the SCBA and has acted as an invaluable resource to the bar association’s educational arm, the Suffolk Academy of Law, over the years. In addition to his new role as a Director, DeMaio currently serves as Treasurer and an officer of the Academy of Law, on the Board of Managers for the Suffolk County Bar Association Charity Foundation, and as Chair of the SCBA Newly Admitted Attorneys Committee. Previously, he served as Co-Chair of the Membership Services & Activities Committee. 

DeMaio is a litigation attorney who focuses on contract issues, business disputes, environmental matters, and municipal matters in state and federal court. His municipal work includes Article 78 proceedings, zoning/land use matters, and defending municipalities. He also focuses on commercial landlord-tenant cases and a variety of appeals. Richard works extensively on researching and drafting motions and appellate briefs in state and federal court. He has argued and won several appeals pertaining to land use/zoning, commercial, and general litigation.

We are pleased to congratulate DeMaio on his new role which will increase his involvement in the legal community.

Marc Saracino Recognized by Herald Community Newspapers as a 2024 Top Lawyer of Long Island

Posted: April 11th, 2024

Campolo, Middleton, & McCormick, LLP is proud to announce that CMM’s Marc Saracino has been recognized by Herald Community Newspapers as a 2024 Top Lawyer of Long Island in the Corporate category. Saracino will accept his award at the gala dinner on April 16 at The Heritage Club at Bethpage. The Top Lawyers ceremony celebrates attorneys who embody excellence in their area of legal practice and demonstrate outstanding community involvement.

Saracino focuses primarily on M&A transactions, private equity, and alternative investments. His practice also encompasses private placements, commercial leasing, employment issues, and a variety of general corporate transactions. Saracino also serves as General Counsel to Strata Alliance, a multi-family office with a network of carefully curated service providers, redefining the concept of assisting affluent and sudden wealth families, who are committed to investing capital in Long Island businesses and development projects. 

Saracino has experience negotiating corporate restructurings and drafting a range of corporate documents including purchase and credit agreements, subordination agreements, note purchase agreements, indentures, and legal opinions. Saracino has played an integral role in a variety of deals in which he represented lender syndicates and managed the negotiation of deal documents and review of due diligence. He also has experience in cross-border transactions, ensuring compliance under the Bank Secrecy Act/Anti-Money Laundering laws and Office of Foreign Assets Control regulations.

CMM Represents Vicon Machinery Group in its Acquisition by Lindab International

Posted: March 18th, 2024

Campolo, Middleton & McCormick is delighted to announce that our client Vicon Machinery Group, the leading U.S. manufacturer of rectangular ventilation duct machinery, has been acquired by Lindab International, a publicly traded billion-dollar corporation.

Vicon is the industry leader in North America for the manufacture of HVAC ductwork machinery. Their office is headquartered in Bohemia, New York, with production facilities in Missouri and Pennsylvania. Vicon is comprised of four companies: Vicon Machinery, Plasma Automation, Walsh Atkinson Company, and Central States Machinery with approximately 20 distributors across the U.S.

Lindab is an international leader in the production of ventilation ducts. This acquisition will give Lindab more comprehensive access to the North American market, according to Lindab President and CEO Ola Ringdahl. This acquisition more than triples Lindab’s sales in the U.S. while doubling global sales of machines for duct production.

Lindab, listed on the Nasdaq Stockholm, Large Cap, under the ticker symbol LIAB, has over 5,000 employees in 20 countries and generates over $1.2 billion in revenue.

Vincent Costa led the deal team, which included CMM’s Marc Saracino and Zachary Mike.  Through the negotiations, CMM worked closely with multi-family office Strata Alliance; tax advisors Sasserath & Co.; M&A advisory firm Protegrity Advisors; and trusts and estates counsel DePinto Faldetta, LLP.

Congratulations to the all the Vicon companies and Lindab for the upcoming success of the business integration.

Campolo Moderates HIA-LI Economic Development in the Town of Islip

Posted: March 13th, 2024

Joe Campolo moderated the HIA-LI Economic Development in the Town of Islip panel on Wednesday, March 13, 2024. The event was held at Boulton Center for the Performing Arts with opening remarks by Frank Boulton, Owner of Boulton Center and Founder & CEO of L.I. Ducks. The panelists spoke about the latest happenings in the Town of Islip including exciting updates on MacArthur Airport, Station Yards in Ronkokoma, and Shoregate in Bay Shore. Panelists included Angie Carpenter, Supervisor of the Town of Islip; Shelley LaRose Arken, Commissioner of L.I. MacArthur Airport; James Coughlan, Co-Founder of Tritec Real Estate; and John Walser, Executive Director of Economic Development of the Town of Islip.