Proposed rules on overtime pay protection delayed until 2015

Posted November 4, 2014 Company News

The Department of Labor (DOL) has delayed its intention to propose rules under the Fair Labor Standards Act (FLSA) addressing overtime pay protection until 2015.

This delay comes as a relief to many employers, as the upcoming amendments to overtime pay protection mandated by President Obama’s Presidential memorandum this past March could make it more difficult to class an employee as exempt. Several possible regulation changes that may be under consideration in 2015 include:
Increased salary threshold

Exempt white-collar employees have a predetermined salary falling below the salary threshold. Employers may not reduce an employee’s fixed salary because of inconsistent quality or quantity of work. The salary threshold for white-collar employees is currently $455 per week; if it increases, more employees will be entitled to overtime pay.

More difficult-to-pass duties tests

Employees are currently classified as exempt if they perform certain duties. The primary work of an exempt employee must meet the first requirement of the standard duties test for the particular exemption. While the primary factor test takes all facts in each particular case into account, the amount of time an employee spends performing required duties is a key factor.

Requirements for exempt primary duties

Current overtime regulations define “primary duty” as one that consumes over 50% of the employee’s time. Employer groups seek to make a rigid 50% time requirement on exempt primary duties a strict requirement for exemption, rather than a factor for consideration.

 

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