Back in the first quarter of 2014, President Obama directed the U.S. Department of Labor to prepare and propose new FLSA regulations that specifically address the exemption rules of certain employees from the current FLSA overtime requirements. The White House administration is seeking to reduce the number of employees who are currently exempted from overtime pay requirements. These changes, if enacted, will drive up the employers’ cost of doing business.
In President’s Obama directive to the Secretary of the Labor, he seemed to be pushing regulatory changes that would impact the “white collar” exemptions including executive, administrative and professional exemptions. Since these positions are found in most business sectors, a huge number of employees will be impacted with the proposed regulations becoming law.
The new proposed rules for the “white collar” overtime exemptions were to be released around November of last year. The latest word on the street is that these revised regulations will come out for the public comment period sometime in the first quarter of 2015. The two most significant changes include the increase of the $455 minimum weekly salary threshold for exempt workers to something around $600 to $800 per week, and the change of the primary duties will likely require all “white collar” exempt employees to perform “exempt duties” more than 50% of the total work time.
HR professionals need to be proactive and complete a review of their exempt classified positions to determine what percentage of time is actually spent performing “exempt level” duties. Our DBDescriptions and DBCompensation software programs include an automated job description writer with the feature of being able to input a percentage number and down drop frequency level (daily, weekly, monthly, quarterly, annual and irregular) for each primary or essential job duty.
You can start the FLSA exemption classification process to ensure compliance with current and proposed regulations and be ahead of the curve as the changes are coming in the near future. Contact us for a demo of either or both of our HR software systems.