On Sept. 24, the U.S. Department of Labor (DOL) announced a new final rule regarding eligibility for overtime pay (federal final rule). The rule requires employers to revisit their classifications of employees as exempt in order to ensure compliance. Meanwhile, Pennsylvania has not issued a final rule regarding its proposed rulemaking that would dramatically increase salary requirements and revise the duties test for exempt employees.

The Fair Labor Standards Act (FLSA) and its regulations require employers to pay minimum wage and overtime rates to employees unless they are exempt from those requirements. The statute and regulations create exemptions, and two tests to determine whether an employee is exempt or nonexempt: the duties test and the salary test. The U.S. Department of Labor announced rules in 2016 to dramatically increase the salary threshold in order for certain categories of employees to meet the standards for exemption from federal overtime requirements. The rules were met with litigation and a stay of their enforcement. The new federal final rules do not impose as dramatic a salary increase in order to meet the test.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]