Time OT! DOL Proposes Significant Updates To Overtime Rules…Again

On August 30, 2023, the US Department of Labor announced a Notice of Proposed Rulemaking (NPRM) that could significantly change the "white collar exemptions" to the overtime compensation requirements of the Fair Labor Standards Act (FLSA).

Under current law, by default all employees covered by the FLSA are entitled to overtime pay at the rate of 1.5 times their regular rate of pay for all hours worked in excess of 40 hours in a workweek. However, under the FLSA's "white collar" exemptions, employees who perform certain administrative, executive, computer and/or professional duties and who are paid at least $35,568 per year on a salary basis ($684/week) are exempt from the FLSA's overtime pay requirements. "Highly compensated employees" – those that perform office or non-manual work and at least one of the exempt executive, administrative, or professional duties and are paid on a salary basis – are exempt if their salary is $107,432 or greater.