As most employers know by now, the U.S. Department of Labor (“DOL”) has proposed amendments to the Fair Labor Standards Act’s (“FLSA”) “white collar” exemption tests for executive, administrative, and professional employees. If you have not yet heard. The proposed amendments revise the salary basis test by, among other things, more than doubling the annual salary required for an employee to be considered exempt from overtime or minimum wage provisions under the FLSA’s white collar exemptions. Currently, the white collar exemptions in 29 CFR Part 541 require employers to pay employees a salary of at least $455 per week ($23,660 annually) and to perform certain exempt duties. The proposed amendments increase the salary basis test from $455 per week to $970 per week ($50,440 annually) beginning in 2016, although the final salary figures may be even higher.
The DOL has published a regulatory agenda that shows a July, 2016 timeframe for issuing the “Final Rule” revised regulations. U.S. Solicitor of Labor Patricia Smith commented recently at an American Bar Association Labor & Employment Law Section event that the revisions would not likely be forthcoming until “late 2016”, which some interpreted to mean possibly not until after the elections. It is not unusual for DOL to fail to meet the target dates given its published agendas. So exactly when the new regulations will be released remains uncertain, although it seems very unlikely it will be before July of 2016.
If the “Final Rule” is published on July 1, 2016, and assuming its effective date is set for 60 days later, then employers would have until August 30, 2016 to take the steps necessary to comply with the regulatory changes.
The regulatory agenda can be found here: http://www.reginfo.gov/public/do/eAgendaViewRule?pubId=201510&RIN=1235-AA11
Please contact any member of Verrill Dana’s Labor & Employment Law Group to discuss different possible strategies to comply with these expected changes in the law.
Voluntary Benefits Move into the ERISA Litigation Crosshairs
Employee-paid accident, critical-illness, cancer, and hospital-indemnity insurance have long occupied a quiet corner of employee benefit plan...Verrill Recognized by U.S. News as One of the Best Law Firms to Work for in 2026
BOSTON, Mass., BANGOR and PORTLAND, Maine, GREENWICH and WESTPORT, Conn., – Verrill has been featured on U.S. News’ 2026 Best Companies to Work...Robert Keach Quoted in Law360 on SIMAD Summer Camp Bankruptcy Sale
Verrill attorney Robert Keach was recently quoted in a Law360 article examining the Chapter 11 bankruptcy proceedings involving SIMAD Holdings and...Chris Tsouros Featured in Law360’s Coverage of Sports Real Estate Deals
Verrill Partner Chris Tsouros was recently recognized in a Law360 article highlighting law firms involved in significant sports real estate projects...What Maine’s New Employer Surveillance Law Means for Maine Employers
Maine employers who monitor their workforce, whether through productivity software, GPS, call recording, or cameras, have a new compliance obligation...Run Don’t Walk: The Implication of “While Supplies Last” Prize Promotions
This month a big-chain grocery store has been offering daily mystery boxes during specific timed drops on a first-come, first-served basis, to users...Maine’s Noncompete Statute is Reshaped for Health Care Workers: What You Need to Know
Employers of individuals who are licensed under state law to perform, or provide, health care services in the State of Maine should be prepared for...Verrill Recognized by WMTW for Partnership Supporting Hunger Relief in Maine
Verrill was recently featured in coverage by WMTW News 8 for its role in a collaborative effort to combat food insecurity across southern...