On August 30, 2023, the U.S. Department of Labor (DOL) announced a proposed rule to amend current requirements that employees in white collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA). 

Increased Salary Level

The FLSA white collar exemptions apply to individuals in executive, administrative, professional, and some outside sales and computer related occupations.  Some highly compensated employees may also qualify for the FLSA white collar overtime exemption.

Automatic Updates

The DOL proposal also includes mechanisms that would allow the agency to update the white collar salary level thresholds automatically every three years without having to rely on the rulemaking process. 

Comment Period

The federal rulemaking process requires the DOL to allow the public to comment on proposed regulations before the agency adopts and implements final regulations.

For this rule, the DOL has established a 60-day comment period.  Although the DOL has announced the proposed rule to amend the FMLSA white collar exemptions, the proposal has not been published yet in the Federal Register.  Those wishing to comment on the proposal must wait until the rule is published and the comment window begins. 

Impact on Employers

This proposal does not impose any new requirements on employers at this time.  However, employers should become familiar with the proposed rule and evaluate what changes they may need to adopt if the rule is implemented as proposed.  As always, AdvanStaff HR will keep you apprised of any notable updates.