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Proposed Changes Affecting FLSA Exemptions Issued

On July 6th, the Department of Labor issued its much anticipated rules designed to update the Fair Labor Standards Act (FLSA) regulations. The rules sought to “define and delimit” overtime exemptions for while collar employees. Whether an employee is exempt or not can have a significant impact on a worker’s take home pay. Those employees who are exempt are not entitled to overtime compensation regardless of how many hours worked. On the other hand, “non-exempt” workers are entitled to be paid overtime pay at the rate of one and one-half times their standard rate of pay for all time worked in excess of 40 hours in any one work week.

The new rules were one part of President Obama’s initiative to address income inequality, and the concern that many workers who were classified as exempt should be entitled to overtime compensation.

The rules proposed to raise the current threshold to qualify as exempt from $455/week to $970/week.

Observers note that if the If these regulations are finalized, up to an additional five million workers will be entitled to overtime under the FLSA.

For more information about the FLSA or exemptions, or if you have any questions concerning your status as exempt or non-exempt, please contact the experienced Atlanta wage and hour lawyers at Buckley Beal LLP for an immediate consultation.

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