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Quick Update on the Obama Administration's Efforts to Update the FLSA White Collar Exemptions

As has been widely reported, President Obama has ordered the US Department of Labor to updated existing federal regulations on overtime in order to account for the changing nature of the workplace and to allow both workers and businesses to better understand and apply the exemptions..  Reports have centered on the expectation that the updated regulations will, in part, increase the salary basis requirement, which will in effect allow millions of workers to qualify for time and half pay for the first time.  Today, only 12% of salaried workers fall below the current threshold whereas it was as high as 65% back in 1975.

The administration had signaled that the proposed regulations would be ready in February.  That obviously hasn’t happened.  And just to give you a quick update, we have now learned that the administration has first submitted its proposed regulations to the Office of Management and Budget for review.  That Office typically has 90 days in which to review a proposed regulation, and it is also permitted one 30-day extension.  So it could be some time before the administration releases the proposed regulations to the public.  But they are coming and we will certainly let you know when they do.

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