Last week, the Department of Labor’s Wage & Hour Division (WHD) finally announced its long-promised proposal to amend the Fair Labor Standards Act (FLSA) Regulations and, in particular, those governing the “white collar” exemption for executive, administrative, and professional employees. For our comprehensive discussion of the changes in the DOL’s Notice of Proposed Rulemaking (NPRM), see our previous coverage on What Changed, What Didn’t, What’s Next for Employers. Today, I want to dig a bit deeper into the DOL’s rationale set forth in the 285+ pages of preamble, and in particular one place where the DOL’s analysis left me scratching my head. The DOL concludes that the new FLSA regulations mean all of your soon-to-be-formerly exempt employees will receive a big raise—to the tune of $1.5 billion in the first year alone. Surprised? I thought so.
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