In March of 2014 President Obama issued a Presidential Memorandum directing the Secretary of the United States Department of Labor (“DOL”) to update the FLSA regulations governing exemptions from overtime, the so-called White Collar Exemptions. The existing regulations were viewed as out of date and needing overhaul. Of particular concerns were the $455 per week salary threshold applicable to most of the tests and the administrative and executive exemptions.
On May 5, 2015, the Secretary announced that the proposed rule has been completed and sent to the Office of Management and Budget for review. The Department’s blog post making the announcement can be viewed here. The next step in the rulemaking process is a release of the rule for public comment. Often the comment period is brief, and employers and stakeholders should be on the lookout for an announcement. These revisions are expected to have a significant impact on the pay structure for a large number of employees in office and administrative jobs.