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Senate Bill May Hint at Where White Collar Exemptions are Going

On March 13 of this year, President Obama issued a Presidential Memorandum (“Memorandum”) directing the federal Department of Labor (“DOL”) to modernize regulations governing the “white collar” exemptions from minimum wage and overtime.  Although we are unsure what those changes will be, a recently-introduced Senate Bill, the Restoring Overtime Pay for Working Americans Act, has put this issue back into the spotlight.  Although it is not expected to pass, it offers a glimpse of the direction the DOL will go in changing these exemptions.

Generally, employees who perform certain executive, administrative, and professional “duties” and make a salary of at least $455 per week, are exempt from the minimum wage and overtime requirements of the Fair Labor Standards Act.  Under the bill, the salary threshold would increase to $1,090 over several years and then be indexed to inflation.  Further, employees would not be able to spend over 50% of their time on duties outside the exempt duties.

We will keep you updated on this bill, which is currently in committee, and on the DOL’s progress in issuing regulations, expected this November.

Brody and Associates regularly advises management on complying with state and federal employment laws including wage and hour laws.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.965.0560.