On September 24, 2019, the U.S. Department of Labor (DOL) announced its Final Rule that will substantially reduce the number of executive, administrative and professional employees (white collar employees) who are currently exempt from the Fair Labor Standards Act’s overtime protections by increasing the minimum salary threshold at which workers become exempt.

Employers need to analyze whether their currently exempt white collar employees will meet the new requirements and determine how they will respond to this Rule. Employers have various options, such as: (1) increasing salaries of those properly classified as white collar employees to meet the new salary level; (2) simply paying more overtime; (3) limiting overtime hours; or (4) reducing base salary to compensate for overtime hours while still paying the hourly minimum wage.

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