FLSA Changes Could Make Many Retail Managers Non-Exempt Employees

Expectations are that the U.S. Labor Department's proposed regulations re-defining the federal Fair Labor Standards Act's executive, administrative, professional, outside-sales, and derivative exemptions will be released in the next few weeks, if not within days.

As we have said, these provisions will probably include:

• A substantial increase in the minimum salary amount; and,
• A significant narrowing of the duties-related requirements.

Employers in retailing who treat store managers or assistant store managers as exempt under the FLSA (typically under the "executive" exemption) are concerned that these changes will force them to convert the employees to non-exempt status. But there might be an alternative.