On July 6, 2015, the U.S. Dept. of Labor (DOL) issued a notice of proposed rulemaking that would change the regulations that exempt administrative, executive, and professionals from the Fair Labor Standards Act’s minimum wage and overtime requirements.
These positions are often referred to as the “white collar” exemptions.
The proposed rules would change the current salary threshold for exemption employees from overtime pay from $455 per week ($23,660 per year) to $921 per week ($47,892 per year). That equates to an over 100 percent increase.
Employers impacted by the rule change will have to increase employee compensation to meet the threshold, or begin paying overtime.
The DOL is accepting written comments on the proposed rule through September 4, 2015.
We recommend that all employers and Chamber members should conduct an audit of their wage and hour practices to:
- Ensure that all employees and independent contractors of the business are properly classified;
- Ensure all employees are paid the proper minimum wage; and
- Determine how many employees may be subject to the new overtime rules once they go into effect.
Here’s a link to more information in a question-and-answer format from the USDOL: http://www.dol.gov/whd/overtime/NPRM2015/faq.htm