DOL Delays FLSA Exemption Changes Until 2015

Back in June, we wrote an article telling you that the U.S. Department of Labor (DOL) had released its semiannual regulatory agenda including several planned regulation changes. Among these was the DOL’s plan to revise the exempt statuses under the Fair Labor Standards Act (FLSA). At that time, the DOL said it expected to release proposed regulations by November 2014.

This month, the DOL announced it will not meet its self-imposed deadline and that these regulations will be delayed until 2015. The DOL’s Solicitor of Labor, M. Patricia Smith, said the DOL is “months away from a proposed regulation” and hoped to see it rolled out early in 2015.

The regulation changes are expected to reduce the number of employees who will qualify for exempt status, making more workers eligible for overtime pay. Specifically, we expect an increase in the salary level currently required for exempt employees of $455 per week or $23,660 per year.

Exactly when we can expect a final rule is unknown, but it is a matter of when and not if. These changes will affect almost all employers. Assessing your FLSA compliance now will ensure you are ready when the changes occur sometime next year. We will keep you up to date as we learn of further developments.