On March 27, the U.S. Department of Labor published a proposal to modernize its 50-year-old regulations by defining exemptions from the Fair Labor Standards Act (FLSA) for “white collar” employees. This proposal is designed to help small businesses grow and guarantee overtime pay for an additional 1.3 million low-wage workers.

U.S. Secretary of Labor, Elaine L. Chao stated: “Our proposal will strengthen overtime for the most vulnerable low-wage workers and allow for stronger Department of Labor enforcement of this important worker protection.”

Take a look and see what these changes mean:

• Minimum salary level increased. The DOL’s proposal would raise the minimum salary to $425 per week.
• Simplified tests for each exemption will be created focusing on “primary responsibilities.”
  
• More equitable treatment of employees. The DOL proposes to allow deductions from the salary of exempt employees for full-day absences taken for disciplinary reasons.

The impact of these changes as sited by the DOL:

• 1.3 million additional low-wage workers gain overtime protection.
• Overtime protections strengthened for additional 10.7 million hourly workers.
• Enhanced economic growth.
• Rules easier to apply and enforce.

Source: Department of Labor