Overtime Exemption Rule Update

Working overtimeNew Overtime Exemption Rules Move Closer to Implementation

Proposed changes to the Fair Labor Standards Act (FLSA) moved closer to implementation this month, as the Department of Labor has sent modifications to the White House’s Office of Management and Budget (OMB). The OMB now has 90 days to review the changes. The proposed rules include an increase to the exempt employee salary threshold, an increase to “highly compensated” employee salary thresholds, and the implementation of penalties to employers for misclassifying non-exempt employees as exempt. These changes will ultimately create more employees who are eligible for overtime pay.  Final rules are predicted to become effective in July or August.

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