An article by Martin W. Aron and Allison J. Vogel originally published in the Business Law Section Newsletter Vol. 40, No. 1/July 2016.
On May 23, 2016, the U.S. Department of Labor (DOL) published its final rule amending the federal Fair Labor Standard Act’s (FLSA) overtime exemptions for ‘white-collar’ employees. The DOL’s administrative action will result in approximately 4.2 million exempt employees becoming eligible to receive overtime and impose an increase in wages of $1.2 billion per year upon the domestic business community throughout the United States.1 The DOL also has created a mechanism that will automatically update the salary level for exemption every three years.2 Based upon current estimates, 43 million employees may be impacted by these changes.3 The final rule will take effect on Dec. 1, 2016.
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