Following the delivery of the Final Rule on the Fair Labor Standards Act’s (FLSA) “white-collar” exemptions to the Office of Information and Regulatory Affairs of the Office of Management and Budget on March 14, we are one step closer to publication of the Final Rule. As employers wait with bated breath, many are busily planning for an expected doubling (or more) of the salary level for an employee to qualify as an exempt executive, ­administrative, or professional employee who need not be paid overtime for hours worked over 40 in a work week under the FLSA.

In preparing for the issuance of the Final Rule, many employer efforts likely are focused on analyzing employees currently classified as exempt and paid between $455 per week—the current salary level required to be exempt under the FLSA’s executive, administrative or professional exemptions—and $970 per week, the projected level included by the U.S. Department of Labor (DOL) in the proposed regulations issued last summer. However, with these changes on the horizon, now is an opportune moment for employers not only to look at salary levels to comply with the Final Rule, but to conduct a broader ­analysis of employee classification strategies and consider modifications to different job ­descriptions and job families, which better meet organizational needs going forward.

Exempt versus Non-Exempt

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