Hays Post

Business owners and salaried employees could see significant changes should a proposed U.S. Department of Labor rule change go into effect.

The DOL last month announced a Notice of Proposed Rulemaking that would amend the Fair Labor Standards Act and extend overtime protection dramatically.

Currently, an American worker must earn a minimum of $23,660 a year and pass a series of duties tests to be considered “exempt” — or salaried. The proposed change would increase that minimum to $50,440.

Hourly workers are required to be paid at least minimum wage for the first 40 hours they work in any week, and time-and-a-half for all hours worked after 40.

The change will also create a mechanism to regularly re-revaluate that minimum salary for salaried workers.

According to the White House, the rule would provide overtime protections to 5 million American workers in the first year of implementation.

“Since 1940, the Department’s regulations have generally required each of three tests to be met for one of the FLSA’s white collar exemptions to apply: (1) the employee must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed; (2) the amount of salary paid must meet a minimum specified amount; and (3) the employee’s job duties must primarily involve executive, administrative or professional duties as defined by the regulations,” according to the DOL.

Common exempt professions — each of which carries minimum salary regulations, as well — include commissioned sales employees, farm workers, some computer professionals and drivers, and management positions.

The DOL is in the middle of a public comment session on the new overtime regulations. The public has until Sept. 4 to comment.

Click HERE to visit the public comment submission page.