The Department of Labor has released its long-awaited notice of proposed rulemaking updating the Fair Labor Standards Act’s white collar overtime exemptions. The DOL released the proposed rule on Tuesday morning and will invite interested parties to submit written comments over the next two months. The revisions would more than double the minimum salary threshold for the law’s white collar exemptions, which the White House expects would immediately entitle approximately five million additional workers to overtime pay, and they also provide for future automatic increases. We take a look at the proposal and its potential implications below.
The FLSA requires most employers to pay their employees at least the minimum wage for each hour worked and to provide overtime pay at a rate of time-and-a-half for any hours worked in excess of 40 per week. The Act, however, exempts some workers from its overtime protections. The DOL has proposed to revise the regulations relating to the most important of these exemptions for executive, administrative, professional, outside sales and computer employees – known generally as the “white collar” exemptions. To qualify for these exemptions, the employee must satisfy certain job duties tests and receive a minimum weekly salary.