On March 7, 2019, the U.S. Department of Labor (DOL) announced a proposed rule that would substantially reduce the number of executive, administrative and professional employees (white collar employees), currently exempt from the Fair Labor Standards Act’s overtime protections by increasing the threshold salary level above which workers can be exempt from minimum wage and overtime requirements. For employers, this could mean a substantial increase in payroll costs and new time keeping requirements for employees who were previously exempt.

The proposed rule will be open for 60 days for public comment and could take months to become final. It will be important for employers to follow the progress of this proposed rule so they can take appropriate action to comply with the Fair Labor Standards Act should the proposed rule become final.

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