Burr & Forman

03.20.2014   |   Articles / Publications

Burr Alert: Many Exempt Employees with Salaries $30,000 to $50,000 May Soon Be Entitled to Overtime

 

On March 13, 2014, President Obama signed a memorandum directing the United States Department of Labor to revise the regulations concerning employees’ eligibility for overtime pay under the Fair Labor Standards Act (“FLSA”). Currently, employees with salaries of $23,500 or more may be exempt from receiving 1.5 times their regular pay rate in overtime pay if their duties meet tests under the executive, administrative, and professional exemptions requiring managerial or supervisory responsibilities, advanced knowledge, or independent judgment. Although President Obama has not provided the specific nature of the changes to the exemptions he is seeking, it is likely that he will increase the salary pay requirement to a level between $35,000 to $50,000 per year.

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