Over the last few years, President Obama has directed the U.S. Department of Labor to implement measures to help “give America a raise.” The Obama Administration and the DOL have tackled equal pay for women and men, worker misclassification, and have increased the minimum wage for federal contractors to $10.10 per hour. In March 2014, President Obama directed the U.S. Secretary of Labor to “modernize and streamline” the FLSA’s “white collar” overtime exemption regulations. On June 30, 2015, the DOL unveiled the long-awaited proposed revisions to the exemption regulations. The shockwaves immediately sent many employers into panic mode. Approximately 4.6 million workers would join the ranks of the other 43 million overtime-eligible workers in the United States in the first year of the implementation of the proposed changes. The direct costs to employers would result in a startling estimated average between $ 239.6 and $255.3 million per year.
While businesses have struggled with recent monumental changes, such as the Patient Protection and Affordable Care Act, one constant remained—the minimum wage and overtime regulations had not changed, significantly. Since 1940, the FLSA regulations have generally required the following three tests for the white-collar exemptions to apply:
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