Mirick O'Connell Header
L ABOR, E MPLOYMENT AND E MPLOYEE B ENEFITS
L AW U PDATE
S POTLIGHT ATTORNEYS:

 

 Brian Casaceli


 


  D. Moschos 


 

Join Our Mailing List 
Coming to a Workplace Near You:
New Fair Labor Standards Act Overtime Regulations Appear Imminent
The U.S. Department of Labor ("DOL") recently sent proposed regulations to the Federal Office of Management and Budget ("OMB") to amend the Fair Labor Standard Act's White Collar Exemptions - i.e., the professional, executive and administrative exemptions - by increasing the minimum salary requirement for exempt employees.
 
Readers may recall that in 2016, the Obama Administration planned to raise the minimum salary requirement for the White Collar Exemptions from $455 per week to $913 per week but was blocked from doing so by Judge Amos L. Mazzant of the United States District Court for the Eastern District of Texas. For a refresher on that case, take a look at our colleague, Bob Kilroy's, article on Judge Mazzant's decision here.    
 
It is expected that OMB will take a few months to review the proposed regulations before they are published in the Federal Register, at which point the public (i.e., affected employers) will have the opportunity to review and comment on the proposed regulations for the first time. Following the public comment period, the DOL may further amend the proposed regulations based on comments received, or it could decide to adopt the regulations as proposed, without any further amendments.
 
Although we cannot anticipate with certainty where the proposed rule will set the minimum salary, several commentators expect the salary level to be set in the low to mid $30,000s, which would equate to a weekly salary of between $575-$700. If this were to happen, employees presently classified as exempt under one of the White Collar Exemptions making less than the new salary level would need to be reclassified as non-exempt hourly employees or, in the alternative, have their pay increased to at least the new salary level to retain their exempt status.
 
We will continue to track the status of the proposed regulations and update you when they are released for public comment.    
   


Worcester Office
Mercantile Center 
100 Front Street
Worcester, MA  01608
t 508.791.8500
f 508.791.8502
Westborough Office
1800 West Park Drive
Suite 400
Westborough, MA  01581
t 508.898.1501
f 508.898.1502
Boston Office
175 Federal Street
Suite 1220
Boston, MA 02110

Mirick O'Connell is a full-service law firm with offices in Worcester, Westborough and Boston, Massachusetts.  The Firm's principal practice groups include Business;
Construction Law; Creditors' Rights, Bankruptcy and Reorganization; Elder Law; Family Law and Divorce; Health Law; Intellectual Property; Labor, Employment and Employee Benefits; Land Use and Environmental Law; Litigation; Personal Injury; Public and Municipal Law; and Trusts and Estates.
This client alert is intended to inform you of developments in the law and to provide information of general interest.  It is not intended to constitute legal advice regarding a client's specific legal issues and should not be relied upon as such.  This client alert may be considered advertising under the rules of the Massachusetts Supreme Judicial Court.
This client alert is for informational purposes only.  It is not intended to be a solicitation or offer to provide products or service to any individual or entity, including to a "data subject" as that term is defined by the European Union General Data Protection Regulations.
 
©2019 Mirick, O'Connell, DeMallie & Lougee, LLP.  All Rights Reserved.