FAIR LABOR STANDARDS ACT
PREPARING FOR
THE DOL ’ S PROPOSED FLSA OVERTIME RULE
On August 30 , 2023 , the U . S . Department of Labor ( DOL ) announced a proposed rule to amend current requirements that executive , administrative , and professional employees ( EAPs ) must satisfy to be exempt from the minimum wage and overtime requirements of the Fair Labor Standards Act ( FLSA ). If the rule is finalized and implemented , the overtime protections will extend to approximately 3.6 million more workers in the country .
The DOL has established a 60-day comment period for this rule . However , although the DOL has announced the proposed rule to amend the FLSA white-collar exemptions , the proposal has not been published yet in the Federal Register . Those wishing to comment on the proposal must wait until the rule is published and the comment window begins .
The agency ’ s new overtime rule could significantly affect organizations ’ operational and compliance costs and increase their litigation risks , so it ’ s critical that employers understand the new rule and its potential impacts on their businesses . The proposal does not impose any new requirements on employers at this time . Still , employers should familiarize themselves with the rule and evaluate what changes they may need to adopt if it is implemented as proposed .
This article provides an overview of the proposed overtime rule , highlights potential changes the new rule could bring , and outlines preparations for employers .
OVERVIEW OF THE FLSA ’ S WHITE- COLLAR MINIMUM WAGE AND OVERTIME PAY EXEMPTIONS
Under the FLSA , covered employers must pay employees at least the federal minimum wage for all hours worked , and overtime pay — at a rate of 1.5 times their regular pay rate — for all hours worked over 40 in a workweek . However , the FLSA provides several exemptions from minimum wage and overtime pay requirements . The most common
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