Updating regulations issued under the fair labor standards act

On December 1, 2016, the Department of Labor’s final rule changes updating the overtime regulations will become effective.

Detailed information is available from the Local Wage and Hour Division Office. In late June 2017, the Labor Department opted not to defend the overtime rule that had been scheduled to go into effect on December 1, 2016, but that was enjoined by a federal district court in Texas.The 2016 Overtime Final Rule promulgated by the Obama Administration would have raised the threshold for the “white collar” salary level test to $913/week ($47,476 yearly) from the current $455/week ($23,660 yearly) under which employees must receive overtime pay.In enacting the federal wage and hour law, Congress exempted executive, administrative, and professional employees from these labor standards and left it up to the Secretary of Labor to define the terms of the exemption.

Persons who are properly classified as executive, administrative, or professional employees are considered “exempt employees.” All others are “non-exempt” and must be paid at least the minimum wage and overtime after 40 hours worked in a week.

Under current law, employees working in a “bona fide executive, administrative, or professional capacity” are not eligible for overtime pay.