Overtime Exemption Rule Re-Examined

The Department of Labor (DOL) is reviewing changes to the Fair Labor Standards Act (FLSA) overtime exemption.  Pursuant to the overtime exemption, if you make less than $23,660/year ($455/week) and work more than 40 hours in any work-week, you may be entitled to overtime compensation.  However, if you make more than $23,660 (the threshold amount), you may be considered exempt, and not entitled to overtime pay, regardless of the number of hours worked if you also fall within one of the exempt categories (executive, administrative, or professional). Many have argued that this threshold level is set too low – it has not been tied to inflation – and has been at its current level since 2000.

The previously proposed change set to take effect December 1, 2016 raised the threshold limit to $913/week ($47,476/year).  However this change faced legal challenges and did not take effect.

Based on initial review, most commentators agreed that the exemption limit must be increased and subsequently tied to real wages, or to a similar price index (e.g., Consumer Price Index).

The DOL will continue to evaluate proposed changes and it is anticipated that it will make its recommendations in early 2019.

If you have any questions about how changes to the overtime exemption will affect your wages, or any other wage and hour concern, please contact the experienced Georgia wage and hour attorneys at Buckley Bala Wilson Mew LLP for an immediate case evaluation.