Deep Dive Episode 48 – The Wage & Hour Trifecta: DOL Proposals on Overtime Exemptions, the Overtime Calculations, and Joint Employment
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After over two years of regulatory inactivity, the Wage and Hour Division of the U.S. Department of Labor recently published three proposals to revise the FLSA regulations – on joint employment, the “white collar” overtime exemptions, and the regular rate/overtime calculation. All three will have a significant impact on how employees are classified and paid. In its Notice of Proposed Rulemaking (NPRM) on joint employment, the DOL proposes to adopt the Ninth Circuit’s four-part Bonnette test. The NPRM on the overtime exemptions proposes to increase the minimum weekly salary that employers must pay to exempt employees from $455 to $679, formally revoking the 2016 Final Rule raising the minimum to $913 which was enjoined by a Texas District Court. Finally, the DOL’s NPRM on the regular rate will clarify the types of compensation that employers must include in (and may exclude from) the overtime compensation. Join Tammy McCutchen, former Administrator of the DOL’s Wage & Hour Division, for a briefing on all three proposed regulations.
Principal, Littler Mendelson