It is widely assumed that the U.S. Department of Labor will make public by end of June proposed changes to the white-collar exemptions under the FLSA. USDOL's express purpose is to reduce significantly the number of employees who qualify as exempt from overtime pay under federal law. The regulations will impact nearly every employer, large and small. Once the proposed regulations become public, there will be a short comment period. The final regulations will likely take effect early 2016.
Our Wage and Hour Team believes it is critical that employers start planning now by assessing their current exempt positions and by reviewing their options to control labor costs and address the administrative challenges of likely having to reclassify some current exempt employees as non-exempt and manage more non-exempt employees than they currently have. Team members Mike Killeen, Sheehan Sullivan, and Missy Mordy have been actively following and commenting on these developments for the past year. They addressed what the changes are, and how employers can conduct a self-audit and take proactive risk management steps, including options for dealing with the new requirements.