Womble Employment Law Blog

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...

Updated, September 19, 2017:  The 2016 "white collar" regulations were struck down in federal court, and never became effective. On July 6, 2015, the U.S. Department of Labor (“DOL”) issued proposed new regulations that will significantly change the law governing certain “white collar” workers who are exempt from minimum wage and overtime pay.   All employers need to become familiar with these proposed rules, which may, if they become final, greatly impact wages and overtime pay to workers.   In addition, for those that want to have their voices heard, there is still time (until September 4, 2015) for the public to make formal comments to the DOL. Under the Fair Labor Standards Act (“FLSA”), which is the federal wage and hour law, some employees may be classified as “exempt” from the Act’s minimum wage and overtime pay requirements.    The most well-known and commonly used exemptions are the so-called “white collar” exemptions applicable to executive...