Work it Out Blog

Overtime Threshold Likely to Double - Proposed Changes to Overtime Rules Announced

Jul 14, 2015

The Labor Department’s long-awaited proposed overtime rule changes under the Fair Labor Standards Act (FLSA) have been released.  Under the proposed rules, certain white collar workers (executive, professional, and administrative employees) whose salary is at or below $50,440 per year will be entitled to overtime pay.  This more than doubles the current FLSA overtime threshold of $23,660.  The threshold increase will require employers to begin paying overtime to millions of workers who were previously exempt. 

The proposed rule is now subject to a 60-day public comment period, and may not be finalized for several months.  While the rule is not yet finalized, notification of the proposed $50,440 threshold gives employers an opportunity to prepare to implement the new requirements.  Employers should review their policies and procedures to verify that they are in compliance with current FLSA overtime rules, and to prepare to make adjustments in accordance with the new rules. 

We recommend that employers conduct regular internal audits to ensure employee hours worked and overtime are being properly monitored, and that employee job classifications are accurate and up to date.  Employers should also take this opportunity to review policies related to “off-the-clock” work and employee breaks to confirm FLSA compliance.  Finally, employers should remain aware of the status of the proposed rules to ensure they are prepared to implement its requirements once it is finalized.  Our attorneys will continue to provide updates and alerts on this and other employment law issues as they develop.

Your Day Ketterer attorney is available to help you and your business review the current regulations, and to prepare for the upcoming changes.  Please contact Michelle Reese at mrreese@dayketterer.com, or your Day Ketterer attorney at info@dayketterer.com for more information.  

The content of this blog is for informational purposes only and is not intended as legal advice for any purpose. This blog is not intended to present an exhaustive summary of all applicable laws, or to take the place of legal advice.  If you have any questions regarding the law, please contact us for assistance.