As anyone who follows wage and hour matters is aware, the U.S. Department of Labor (“DOL”)—at the urging of the White House—is currently revising its regulations regarding who is exempt from the overtime requirements of the Fair Labor Standard Act (“FLSA”). One of the key anticipated changes is an increase to the “salary basis” test, which currently requires many exempt employees to earn at least $455 per week (or $23,660 per year) in salary. The question is how much of an increase the DOL will propose.
Last week, 26 Senate Democrats weighed in on the subject. In a letter to President Obama, they demanded that any employee earning less than $56,680 a year be entitled to overtime compensation. Earlier in the month, a group of 31 House Democrats sent President Obama a letter, demanding that the exemption threshold be increased to $69,000 per year.
We will continue to monitor developments regarding the impending revisions to the DOL’s FLSA regulations.
