The U.S. Department of Labor (DOL) has proposed an increase to the salary requirement for employers to claim certain exemptions from the Fair Labor Standards Act’s (FLSA) overtime and minimum wage requirements. The proposal, announced last week, suggests a raise to $1,059 per week, or $55,068 per year, from the current level. The law firm Parker Poe Adams & Bernstein LLP, provided a thorough analysis of the proposition on JDSupra.
FLSA overtime and minimum wage requirements have always been of paramount importance to corporations and their legal advisors. Making certain exemptions from these requirements available to the employers, the Department of Labor now aims to effectively limit these exemptions to higher earners only. The proposal is now to lift the salary requirement significantly from its current level to $55,068 per year, thereby potentially affecting the classification of a considerable number of employees and leading to increased overtime pay.
It is recommended that legal professionals in corporations closely monitor the situation and assess the possible affected employee base within their organizations in advance. As of now, the proposal is undergoing scrutiny and the timeframe for its final acceptance and implementation remains unclear.
Any change in the FLSA overtime and minimum wage requirements could have a profound impact on the working practices in corporations across the U.S. Legal teams need to be prepared for those possible outcomes and should keep apprised of official announcements from the Department of Labor in the coming months.