WASHINGTON D.C. — President Barack Obama issued a memorandum on March 13, 2014 directing the U.S. Department of Labor to modernize and streamline the federal Fair Labor Standard Act’s overtime regulations in order to make more workers eligible for overtime. Specifically, the presidential memorandum tells the DOL to consider how the FLSA’s white-collar overtime exemption could be simplified and updated to address the changing nature of the American workplace. See Obama Overtime Pay Memo and Overtime Pay Memorandum For the Secretary of Labor.
The FLSA requires employers to pay most employees overtime pay at one and one-half times their regular pay rate for the hours they work in excess of 40 in a workweek. However, the so-called white-collar exemption, found in Section 13(a)(1) of the FLSA, provides an exemption from overtime pay for those employed as bona fide executive, administrative, professional and outside sales employees.
Currently, to qualify for the “white-collar” exemption, employees must be paid at least $455 per week on a salary basis, and their job duties must meet specific tests—such as including managerial or supervisory responsibility or requiring advanced knowledge or independent judgment. The white-collar exemption was originally meant for high-paid, white-collar employees; however, the overtime laws have not kept up with the economy, and the exemption now covers workers earning as little as $23,660 per year.
The overtime pay lawyers are closely monitoring these important developments in the law. If you have questions about whether your job is exempt from overtime under the FLSA regulations, contact us for a free consultation. We will answer any questions that you may have and explain your legal rights to you in a clear and understandable manner. Call now at (855) 754-2795!