The U.S. Department of Labor recently announced a proposal that could extend overtime protections to nearly five million white collar workers within the first year of the new rule’s implementation.
The argument for the proposed changes stems from the gradual application of exemptions. The most notable changes that extended exemptions took effect in August 2004 under the direction of the Bush administration. While overtime exemptions were originally intended to be applied only to highly compensated executives and professionals, there are now many cases of workers earning as little as $23,660 per year being classified as exempt. Some examples being cited include managers in convenience stores and fast food restaurants who are often expected to work at least 50-60 hours per week without overtime pay.
The Notice of Proposed Rulemaking (NPRM) was published on July 6, 2015 in the Federal Register (80 FR 38515). Comments on the proposal can be made on or before September 4, 2015 at www.regulations.gov.
The professionals at Daszkal Bolton are monitoring these developments closely and will continue to offer updates as they occur.