Small Business Advocacy

Department of Labor Requests Information Regarding Overtime Exemptions under the FLSA

On July 26, 2017, the Wage and Hour Division of the Department of Labor (DOL) published a Request for Information (RFI) regarding overtime regulations under the Fair Labor Standards Act (FLSA).  DOL invites comments on the 2016 revisions to the “white collar” exemption in the FLSA, including whether the standard salary level set effectively identifies the employees who should be exempt, or whether there should be a different methodology utilized to set the standard salary threshold. DOL also seeks feedback on whether small entities encountered any unique challenges posed by this rule, and if they faced any economic and non-economic impacts.

Under the FLSA, most workers are entitled to minimum wage and overtime pay for hours worked over 40 hours. However, there is a “white collar” exemption in the FLSA for certain executive, administrative, professional, outside sales and computer employees; qualifying for this exemption requires that these employees earn no less than a standard salary threshold and other criteria. In May 2016, DOL finalized a rule that changes the standard salary threshold for this exemption, from $23,660 to $47,476. In November 2016, the rule was enjoined by a federal court before it became effective.

Comments on this RFI are due on Sept. 25, 2017 and can be submitted here.

Read the Advocacy comment letter on DOL’s 2015 proposed rule on this topic.

Advocacy contact: Janis Reyes at 202-619-0312.