DOL Issues Long-Awaited Proposed Rule on White Collar Exemptions to Overtime Pay Under FLSA

For just the second time in more than 50 years the U.S. Department of Labor (DOL) has proposed revisions to its regulations implementing the exemption from minimum wage and overtime pay under the Fair Labor Standards Act (FLSA) for executive, administrative, professional, outside sales, and computer employees. These long-awaited revisions were published just today, more than four months after the DOL originally indicated, and are comprised of nearly 300 pages of bureaucratic data and legalese. Among the significant changes proposed by the DOL to its regulations on exempt status under the FLSA are: Increasing the minimum salary level to meet the exemption, from $455/week ($23,660 annually), to a figure more than double this amount, equivalent to the 40th percentile of earnings for all full-time salaried workers, which would be somewhere between $921/week ($47,892 annually) based on 2013 figures, and approximately $970/week ($50,440 annually) based on current estimates of the earnings of the 40th percentile in the first quarter of 2016, when the proposed rule may go into effect if it is not altered in its final form; Increasing the "highly compensated employee" definition from $100,000 to $122,148 annually (equal to the 90th percentile of earnings for full-time salaried workers); Annual updates to these foregoing minimum salaries based on a fixed percentile of earnings or cost of living indicators; and While not making specific proposals to modify the "duties test" for white collar exemptions, the DOL seeks further comments from the public over its concern that some exempt employees may be performing a "disproportionate amount of non-exempt work." The DOL is accepting comments from the public on its proposed rule before it issues the final version. Timely comments must be recovered by the Department no later than August 29, 2015. To learn more about these proposed regulations and how they may impact whether employees currently regarded as exempt, may soon be non-exempt and entitled to overtime pay, attend our TIMELY WEBINAR (see below to register).

Rescheduled for Thursday, August 6, 2015 from 1:00 pm - 2:00 pm! Don't Get Caught Owing Tens or Hundreds of Thousands in  Overtime Pay in 2015: NEW GAME CHANGING WHITE COLLAR EXEMPTION REGULATIONS  PROPOSED BY THE DOL!! How to Avoid Overtime Liability for White Collar Workers Under the DOL's Proposed New Regulations and Inventive New Tactics by Plaintiff Lawyers.  Presented by James B. Sherman, Esq. and Sean F. Darke, Esq. Cost: $75    Join Wessels Sherman attorneys James B. Sherman and Sean F. Darke for this highly informative webinar focused on helping employers learn how to maintain exempt employment status for employees. In this webinar, we will discuss: Deciphering the newly proposed, 2015 White Collar Exemption Regulations that radically alter exempt/non-exempt salary criteria; Examining new and inventive ways plaintiff lawyers are challenging exempt status of everything from HR Directors, to professionals (even attorneys); Understanding nuances of which salary deductions are and are not permissible to preserve exempt status; Personal liability as it relates to owners, officers and supervisors; Best practices and practical tips.  REGISTER NOW!                                                     HUMAN RESOURCES: 1.00 (General) HRCI credit approved.                                ACCOUNTING:  1.00 CPE credit approved.