US Dept. of Labor Announces Proposed Overtime Rule Changes For Business

• On July 6, 2015, the U.S. Dept. of Labor (DOL) issued a notice of proposed rulemaking that would change the regulations that exempt administrative, executive, and professionals from the Fair Labor Standards Act’s minimum wage and overtime requirements.
• Oftentimes, these exemptions are referred to as “white collar” exemptions.
• The proposed rules would change the current salary threshold for the exemption of employees from overtime pay from $455 per week ($23,660 per year) to $921 per week ($47,892 per year). That equates to an over 100 percent increase.
• Employers impacted by the rule change will have to increase employee compensation to meet the threshold, or begin paying overtime.
• The DOL is accepting written comments on the proposed rule through September 4, 2015.
• Comments can be submitted here: http://www.regulations.gov/#!documentDetail;D=WHD-2015-0001-0001 
• We recommend that all employers and Chamber members should conduct an audit of their wage and hour practices to
  • 1.) ensure that all employees and independent contractors of the business are properly classified;
  • 2.) ensure all employees are paid the proper minimum wage; and
  • 3.) determine how many employees may be subject to the new overtime rules once they go into effect.