In September, the Wage and Hour Division (WHD) conducted public listening sessions to gather views on Part 541 white-collar exemption regulations, often referred to as the “Overtime Rule.” The WHD is expected to update the Overtime Rule and is interested in hearing the views and ideas of participants on possible revisions to the regulations.
Issued under the Fair Labor Standards Act (FLSA), the rule requires employers to pay their employees at least the federal minimum wage for all hours worked, and overtime premium pay for any hours worked over 40 in a workweek. The overtime regulations implement exemptions from overtime pay requirements for executive, administrative, professional, and certain other employees.
Last summer, the WHD published a Request for Information (RFI) Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees. The RFI was one opportunity for the public to provide information to aid in formulating a proposal to revise the white-collar exemption regulations.
The listening sessions provided yet another opportunity for the public to provide input and for the WHD to gain insight on questions such as:
- What is the appropriate salary level (or range of salary levels) above which the overtime exemptions for bona fide executive, administrative, or professional employees may apply?
- What benefits and costs to employees and employers might accompany an increased salary level?
- What is the best methodology to determine an updated salary level?
- Should the Department more regularly update the standard salary level and the total-annual-compensation level for highly compensated employees?
These sessions were conducted in Georgia, Washington, Missouri, Colorado, and Rhode Island.