Executive Summary: Today, in a 295-page report, the U.S. Department of Labor (“DOL”) issued its long-awaited proposed amendments to the Fair Labor Standards Act’s (“FLSA”) “white collar” exemption tests for executive, administrative, and professional employees (located in 29 CFR Part 541). The DOL refrained from amending the duties portion of the tests; however, it did revise the salary basis and salary level tests. If adopted, the DOL estimates that the new regulation will eliminate the exempt status for approximately 21.4 million employees—increasing the financial and regulatory burdens on employers throughout the United States. Despite not amending the duties portion of the white collar exemptions, the DOL discussed in detail the long and short tests, which were eliminated in 2004, and suggested that it may revisit the issue.
Home > Federal Law Articles > FLSA > Overtime Exemptions > The DOL’s Proposed Amendments Increase the Salary Threshold for the FLSA’s White Collar Exemptions – Dramatically Expanding the Number of Employees Eligible for Overtime