FLSA Update: Final Regulations on Overtime Exemptions Likely in 2020
As businesses move closer to planning their 2020 fiscal year budgets and considering pay increases, they should keep in mind that proposed overtime regulations are nearing final publication by the U.S. Department of Labor. The new regulations will impact the so-called "white collar" overtime exemptions for executive, administrative, professional, and highly compensated employees under the Fair Labor Standards Act ("FLSA"). If the regulations become final in 2020 as expected, they will increase the minimum compensation levels required for those workers to be classified as exempt from overtime. Workers who do not meet the higher compensation levels cannot be classified as exempt from overtime under the FLSA. So, the new regulations may result in the need for businesses to give pay increases to some workers to keep their overtime exemptions in place, or otherwise prepare to pay overtime to workers who no longer meet the minimum compensation levels. The new regul