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Making Sense of the Proposed Revisions to the Federal Overtime Rules

In June of this year, the United Stated Department of Labor, at the direction of the Obama administration, announced proposed revisions to the "white collar" exemptions to the federal overtime regulations. The proposed revisions, if enacted, will be the first update to those federal overtime exemptions since 2004. The proposed revisions, explained in detail below, are dramatic and demand attention from employers of all types and sizes because the proposed revisions are projected to mandate the payment of overtime to 4.6 million workers in the United States who are not currently receiving overtime, and the news attention alone is likely to cause many employees to questions whether they should be receiving overtime under the current or proposed rules. Employers who ignore this potential development do so at their own risk!

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