In late April, the Department of Labor (DOL) issued the final revision to proposed regulations governing overtime eligibility for “white-collar” workers under the Fair Labor Standards Act (FLSA).  This is the first substantial change in the FLSA regulations in over 50 years.  The new regulations are written in a more understandable format and have been designed to eliminate confusion of both employees and employers encountered when dealing with the old, outdated regulations.  The primary purpose of the new regulations is to ensure that employees are properly classified in regards to being eligible or not eligible for overtime and receive proper pay for the number of hours they work. The new rules have been designed to “end the confusion that has led to an explosion of class action lawsuits that failed to protect workers’ rights.”  Some of the highlights of the new regulations are as follows:

1. Employees must be paid at least $455 weekly ($23,660 annually) in order to qualify for executive, administrative, professional or computer job exemption (not subject to the provisions of FLSA and therefore not required to complete weekly time records).  This change appears to render even part-time employees making less than this amount automatically subject to FLSA, but this is a specific point still to be clarified prior to implementation.
2. Exemptions will not apply to “first responders" including all law enforcement, firefighters, paramedical and related occupations.
3. Exemptions will not apply to “blue collar” workers involved in production, maintenance, construction or similar occupations.
4. A short-form exemption test for highly compensated employees whose total cash compensation is at least $100,000 annually has been established.
5. The Executive Exemption now requires and defines the authority that employees must have in regards to personnel decisions regarding their subordinates; namely, that an executive must have the “authority to hire or fire,” or have their suggestions as to the “hiring, firing, advancement, promotion, or any other change of status given particular weight.”
6. The Administrative Exemption requires independent judgment and discretion in matters of significance.
7. The Learned Professional Exemption is available only for employees who have attained advanced knowledge through intellectual instruction or a combination of experience and instruction which enables them to perform the same work as degreed professionals.
8. The new regulations allow employers under certain circumstances to make deductions in pay from exempt employees without affecting their exempt status.
9. The new regulations do not apply to teachers (faculty), lawyers or doctors, full-time or part-time.