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Are Changes to Overtime Law Coming?

July 29, 2015

Earlier this month, the Department of Labor announced a proposed rule that would extend overtime protection to an estimated 5 million white collar workers with the first year of implementation.  The “white collar” exemption currently provides that employees who meet certain minimum tests related to their primary job duties and are paid on a salary basis at not less than $455 a week, or $23,660 for a full-year worker.  The rule proposed by the Department of Labor would increase the salary level to $921 a week, or $47,892 for a full-year worker.  Needless to say, this proposed rule could dramatic change the landscape of overtime compensation and could impose significant liability on employers.  You can comment directly on the proposed rule by visiting http://www.regulations.gov/#!docketDetail;D=WHD-2015-0001.  All comments must be posted by September 4, 2015, to be considered.

 

            This rule is just an example of, what appears to be, a trend toward broadening coverage of the FLSA.  The FLSA is one of the most misunderstood and misapplied federal employment statutes and many employers are sitting on a proverbial ticking time bomb of liability for violations of the FLSA.  The attorneys at Buckley Christopher & Haff, P.C. are available to assist in ensuring compliance with the FLSA and can defend you if a claim has already been made.

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