It is only a matter of time before the U.S. Department of Labor (DOL) announces the revised white-collar exemption regulations with respect to the reclassification of employees entitled to overtime pay in the workplace under the Fair Labor Standards Act (the “FLSA”). An article in theNational Law Review reported that the white-collar exemptions should be announced soon, and that the DOL anticipates publishing the revised regulations by late spring or summer 2016. The DOL submitted the final rule regarding these regulations on March 14, 2016. There is a 90-day window, set by executive order, to review the regulations though the review period may be extended on a one-time basis for 30 days by the Director of the Office of Management and Budget. However, commentators opine that the amendments may be published in advance of the deadline. Employers should prepare for these imminent changes.
By way of background, the FLSA was first passed in 1938 to guarantee a minimum wage and to limit the number of hours an employee can work without receiving additional compensation. The proposed changes to the Act, drafted at the direction of President Obama pursuant to a March 13, 2014 Presidential Memorandum, address the statutory exemptions applicable to “white collar” workers, or those workers classified as executive, administrative, and professional employees. The amendments to the so-called “white collar” exemptions will increase salary and compensation thresholds so as to provide a larger number of employees entitled to overtime pay. The DOL predicts that proposed revisions will impact millions of workers and the companies that employ them.