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Department of Labor Proposes New Overtime Regulations

On June 30, 2015, the Department of Labor (the "DOL") released proposed modifications to its overtime exemptions under the federal Fair Labor Standards Act (the "FLSA"). The proposed revisions increase the minimum salary levels necessary to exempt certain white collar employees and highly-compensated employees from overtime pay under the FLSA. The regulations were last revised in August 2004; the long-awaited proposed revisions were prompted by President Obama's March 2014 call to "modernize and streamline" the regulations. The DOL estimates that nearly 5 million currently exempt workers will now be entitled to overtime pay under the new rule, if it goes into effect following the required public comment period.

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Hailey Bair, a Summer Associate in the Firm's New York office, assisted in the development of this alert.

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