FLSA Changes Regarding Overtime

Our New Jersey Employment Lawyers Discuss Changes to the Overtime Regulations

The Fair Labor Standards Act (FLSA) is responsible for setting all regulations regarding minimum wage, overtime, bookkeeping and youth labor in federal, state and local government as well as in the private sector. The Obama administration has set out to update the FLSA so that it will more accurately reflect the economic growth of our country since the original FLSA document in 1938. The result of this undertaking is a 295-page document the Labor Department titled Rewarding Hard Work, which is full of proposed regulation changes. Here’s a list of what these new regulations would do:

  • Raise the minimum salary base from $455 per week to $970 per week for all professional, executive, administrative and highly compensated employees.
  • Raise the annual income to be considered a highly compensated salary employee from $100,000 to $122,000.
  • Establish an automatically escalating salary basis.
  • Unless you qualify for an exemption under the law, all employees will be considered non-exempt.
  • For an employee to be considered exempt under “white collar” exemptions, he or she must meet the requirements of the duties test and be a salaried employee who is paid equal or more than $970 per week.
  • All employees who are exempt on the basis of transportation, outside sales, inside sales, service or categorization as a computer employee, will remain so.
  • Employers will have to raise the base salary of all exempt employees to $970 per week if they have not already or else the employee becomes non-exempt.

These proposed changes to FLSA regulations will undoubtedly frustrate many employees working under the exempt amount, because switching to the new guidelines will limit their freedom and flexibility considerably, as employers will be forced to set stricter guidelines to avoid paying out overtime. This would mean no more taking work home, coming in early, leaving work exactly on time regardless of whether or not current projects have been completed, rigid meal times and more.

This lack of flexibility would negatively affect employers as well, as more of their staff would suddenly be eligible for overtime. The entire 295-page document seems to have done little more than increase the salary requirements of exempt employees, which would not make employees or their employers happy.

If You Have Questions to Ask an Employment Lawyer, Call Our Monmouth County Attorneys Today

If you are in need of legal counsel regarding a problem with the FLSA or other employment legal issues, contact our New Jersey employment law office today. Each of our clients receives the benefit of consulting with experienced Monmouth County attorneys regarding any employment litigation problem they may face.