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Employment eAlert: Proposed Changes to FLSA Exemptions from Overtime

July 2015

The Department of Labor, at the urging of President Obama, has issued a notice of its intent to change the rules to update salary and compensation levels for white collar exemptions from overtime. Currently, employees with certain administrative or executive responsibilities and who are paid a minimum salary of $455 per week are exempt from overtime. The new rules will increase the minimum salary for exempt employees to $970 per week (or $50,440 per year) in 2016. There will be a public comment period for the new rule before it is finalized. However, as a precaution, employers are encouraged to begin analyzing the exempt positions in their organizations to determine which positions or classes of positions may need to be re-classified as non-exempt if the new rule is adopted. Employers should also review their current overtime policies to make sure that the policies clearly set forth when overtime is permitted, what kind of authorization is needed before employees work overtime, and what happens when employees work overtime without authorization.

We will continue to update you on developments related to the new rule.

Check out our Employment Law Blog to stay updated on current issues: employmentlaw.sussmanshank.com.

This article was written by Elizabeth Semler, former Sussman Shank LLP Employment Law Partner.

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