What Employers Need to Know about the Proposed Revised Rule on Overtime 

The Department of Labor (DOL) has proposed a revised rule on white collar exemptions to the overtime requirement of Federal Fair Labor Standards Act (FLSA). While the proposal is not yet in place, employers should carefully review their employees categorized as exempt and consider the implications of the proposed revised rule (revised rule may become final in 2020). 

“Exempt” employees do not receive overtime pay if they work over 40 hours a week and meet the exemption and duties tests. 

Exemption Test and Duties Test 

  1. Salary amount (not hourly pay) 
  2. Primary duty “duties test” 

Employers need to note the proposed salary amount is $679 a week and carefully review how they are currently categorizing employees –taking into account bonus and commission payments. In some cases, employers may want to consider increasing salaries to the new proposed minimum salary level in order to ensure proper classification and to avoid paying overtime to employees. 

If it has been some time since you closely reviewed your payroll worksheets and worker classifications, you may want to ask youemployment attorney for a risk assessment and/or payroll audit. Employment attorneys can quickly ascertain the proper status of employment positions and guide you through the review and decisionmaking process. 

ELS attorneys counsel clients in all matters of FLSA.

Contact Chandra C. Davis at [email protected] or

Raquel Crump at [email protected] for assistance understanding FLSA exemption and duties tests.