Narrower “White Collar” Overtime Exemptions In The Pipeline

Proposed rule changes that would make millions of additional workers eligible for time-and-half overtime pay have been developed by the Department of Labor and submitted to the White House Office of Management and Budget (OMB) for approval. At this stage in the process, they are not public, but a post from Littler Mendelson analyzes the possibilities and what’s likely to become law. What’s virtually certain is that the proposal will include an increase in the minimum salary level required for exemption from Fair Labor Standards Act overtime requirements, currently $455 per week, or $23,660 annually. Questions remain about definitional changes that will affect the overtime exemption for white-collar type work, but the writers expect the DOL to narrow the exemption for retail and restaurant managers and to eliminate the concept known as “concurrent duties.” A quick review by the OMB is likely, according to the writers. When that’s complete the proposed rules will be open for comment.