FLSA – Changes coming?
One of the most recent developments in the world of the Fair Labor Standards Act, is President Obama is looking to strengthen overtime protections. On March 13th, 2014 the White House, Office of the Press Secretary released the Fact Sheet: Opportunity for All: Rewarding Hard Work by Strengthening Overtime Protections.
As an excerpt from the fact sheet states, “The overtime and minimum wage rules are set in the Fair Labor Standards Act, originally passed by Congress in 1938, and apply broadly to private-sector workers. However, there are some exceptions to these rules, which the Department of Labor has the authority to define through regulation. One of the most commonly used exemptions is for “executive, administrative and professional” employees, the so-called “white collar” exemption.” A Presidential Memorandum has been signed instructing the Secretary of Labor to update regulations regarding who qualifies for overtime protection.
These developments may come as a surprise to many, as the DOL’s recent focus has been on the misclassification of employees under current guidelines. By possibly changing the rules as to who qualifies as exempt vs. non-exempt from overtime, in what may be a new form of “duties test”, as well as the possibility of the income threshold for salary being raised; many employers are sure to have questions.
These changes are coming on the heels of an already aggressive crack down on the misclassification of employees, and may bring further complications to employers in remaining compliant. We are urging our clients to be prepared by attending our April 17th Training; during which we will discuss the Fair Labor Standards Act, the current Exempt vs. Non-Exempt classifications, W2 vs 1099, along with what the recent developments may mean for them.