On July 6, 2015, the Federal Register published extremely significant proposed changes to the rules governing overtime under the Federal Fair Labor Standards Act (FLSA). This is the first step in the U.S. Department of Labor (DOL) changing the rules and is primarily directed toward decreasing the number of executive, administrative, and professional (EAP) employees who are exempt from the requirement that employers pay them time-and-a-half (1.5 times) their hourly rate for any time worked over 40 hours during a 7-day period. Put another way, this proposed change is likely to increase the number of people who get paid overtime by raising the threshold “salary basis” for those in traditionally white-collar positions.
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