September 16, 2015

Proposed Rule Issued on Revising Exemptions From FLSA Minimum Wage and Overtime Requirements

The U.S. Department of Labor's (DOL) proposed revisions to the Fair Labor Standards Act (FLSA) would dramatically expand the number of salaried employees eligible for overtime pay. Greg Abrams, counsel in Faegre Baker Daniels' labor and employment practice, explained the proposed changes—which would update the "white collar" exemptions from the FLSA's minimum wage and overtime requirements—in an article he published in The Labouring Oar.

"The new regulations...would increase the weekly salary level applicable to most of these exemptions to an estimated $970 per week and to about $122,000 annually for highly compensated employees," Abrams wrote. "If the DOL's proposed rule becomes effective, it would significantly increase the number of employees eligible for overtime under the FLSA—estimated at close to 5 million more employees in the first year alone."

Abrams noted that the proposed changes will likely prompt "extensive commentary from multiple stakeholders," and that the ruling is not expected to be cemented until sometime in 2016.

The complete article appears on page 7 of the Fall 2015 edition of The Labouring Oar.

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