White collar changes to the Fair Labor Standards Act.
On May 18, 2016, the U.S. Department of Labor released the final rules regarding changes to the "white collar" exemption to the Fair Labor Standards Act (FLSA), 29 CFR Part 541. The Final Rule primarily focuses on updating the salary and compensation levels needed for Executive, Administrative and Professional workers to be exempt from the overtime pay requirements. To that end, the Final Rule:
These critical changes to the FLSA take effect December 1, 2016. In anticipation of these changes, however, the Protecting Workplace Advancement and Opportunity Act (PWAOA) (H.R. 4773, S.B. 2707) was introduced on March 17, 2016. The bill remains pending before Congress but, if enacted, voids the changes in overtime regulations and delays any similar efforts from the Department of Labor for at least a year. It also nullifies employees’ rights to bring a cause of action against their employers for failure to comply with the Final Rule.
Employers should monitor this issue closely and take steps to comply with the DOL’s Final Rule—even though PWAOA is currently pending.
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