Obama Directs the Secretary of Labor To Rewrite FSLA Overtime Regulations

On March 13, 2014, President Barak Obama signed a memorandum directing his Secretary of the Labor to draft revisions to the overtime provisions in the Fair Labor Standards Act (FLSA).  For employees currently covered under the FLSA, employers must pay them at least 1.5 times their regular pay rate for hours worked in excess of 40 hours per week.

However, the so-called white-collar exemption, found in Section 13(a)(1) of the FLSA, provides an exemption from overtime pay for those who make at least $455 per week on a salary basis and are employed in bona fide executive, administrative, or professional capacities.  Although it has yet to release the particulars of its planned revisions, according to multiple news sources, the Obama Administration plans to raise the salary floor of $455 per week, as well as tighten the regulations covering the white-collar exemption.  Suffice to say, these regulations, when they are finally released, will almost certainly pose a myriad of administrative challenges for many employers, and will likely require them to audit their organizational wage and hour practices.  Be sure to stay tuned as the proposed revision progresses.