New Overtime Regulations Moving Forward

It appears that the final regulations increasing the salary requirement for exempt employees under the Federal Fair Labor Standards Act will be finalized by September. Exempt employees are not entitled to receive overtime pay if they work more than 40 hours in a week. Employees who are not exempt must be paid one and one-half times their normal hourly rate for all hours worked above 40 hours in a week.

The Department of Labor submitted the proposed regulations to the Office of Management and Budget for review in mid-March. This review will be completed within 30-60 days, and the final regulations will then be published in the Federal Register. They will take effect 60 days after publication.

The proposed regulations will increase the minimum salary requirement for exempt executive, administrative and professional employees from $23,660 per year to $50,440 per year. (The minimum in New York is now $35,100 for executive and administrative, and $23,660 for professional.) In addition to receiving the minimum salary, exempt employees must meet the job duties tests for one of the exemptions.

It is possible that the salary amount in the final regulations will be less than $50,440, but this is not certain.

Employers with exempt employees earning less than $50,440 per year should be planning how to treat those employees when these new regulations take effect.

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