Federal Department of Labor to Revise Overtime Regulations

07.09.2014

The federal Department of Labor (DOL) is expected to issue new proposed overtime regulations under the Fair Labor Standards Act (FLSA) in November 2014, ten years after it last revised its FLSA regulations.  The focus of the new proposed regulations is expected to be on the FLSA’s “white collar” exemptions, whereby those in the Executive, Administrative and Professional categories are not eligible for overtime pay.

The first area predicted for proposed change is the $455 average weekly salary baseline for the exemptions.  The DOL will likely be requesting comment on at least doubling that minimum so that FLSA-exempt employees make at least $50,000 per year.  Next, the DOL will likely weigh in on some mechanism for indexing the minimum weekly salary to reflect different standards of living in different areas of the country and/or the effect of inflation on the minimum needed for the exemptions to apply.  Finally, the DOL is expected to propose a maximum percentage of work time that an FLSA-exempt employee may perform non-exempt work, but still be eligible for the relevant FLSA exemption.

For questions regarding current and future FLSA compliance, contact Paul Keneally or Jennifer Shoemaker.