Management's Workplace Lawyers

FLSA – President Plans to Limit White-Collar Exemptions from Overtime.

March 31, 2014

President Obama has issued a Presidential Memorandum, directing the Secretary of Labor to update the overtime regulations, specifically with regard to the “white-collar” exemptions for certain executive, administrative and professional employees.  As part of his 2014 “year of action,” the President has increased the minimum wage for government contractors, is attempting to increase the minimum wage for all businesses, and now is seeking to increase the number of workers who will receive overtime pay by reclassifying certain employees who were previously exempt from overtime requirements as overtime-eligible.  The Secretary of Labor is instructed to consider how the regulations could be revised to: (1) update existing protections in keeping with the intention of the Fair Labor Standards Act; (2) address the changing nature of the American workplace; and (3) simplify the overtime rules to make them easier for both workers and businesses to understand and apply.  The Department of Labor will eventually issue proposed regulations, which will be subject to public comment and subsequent revision before being made final.