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Proposed FLSA Changes

July 22, 2015 | Leave a Comment

The Fair Labor Standards Act (FLSA) sets overtime and minimum wage requirements for certain employees. Recently, the U.S. Department of Labor’s Wage and Hour Division issued a proposed rule to update which white collar workers are exempt from the FLSA’s protections. The proposed rule is intended to update the salary level required for the white collar FLSA exemption to apply and to simplify the identification of nonexempt employees.  Nearly every single employer is subject to the rules and regulations identified in the FLSA and, as a result, these proposed changes could have a huge impact to the vast majority of the workforce.   Specifically, the proposed rule would raise the threshold under which most salaried workers are guaranteed overtime to equal a specific percentage of overall weekly earnings for full-time salaried workers. This change would raise the threshold from $23,660 per year to $47,892 per year (or a projected $50,440 per year for 2016). The rule would also Increase the total annual compensation requirement needed to exempt highly compensated employees from the FLSA and establish automatic updates for the salary and compensation levels going forward.   At this time, the rule is a proposal only. The Department of Labor is currently accepting written comments on the proposed rules.  If you would like to respond and voice your concerns regarding these changes, you can do so by clicking here.

For additional information on this topic, please read this – FLSA Changes – or contact Bethany Holliday, Director of TotalHR at

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