Client Alert

U.S. Department of Labor Proposes Revisions to White-Collar Overtime Pay Exemptions: Proposed Federal Rule Would Raise Dollar Thresholds, Streamline Duties Tests, and Create a New Exemption for Highly

April 01, 2003

Gregory R. Watchman

In recent years, the number of class action lawsuits brought under the Fair Labor Standards Act has increased dramatically, overtaking the number of employment discrimination class action suits. These FLSA lawsuits often challenge the employer’s classification of employees as administrative, executive and professional workers exempt from the FLSA’s overtime requirements. On March 31, 2003, the U.S. Department of Labor proposed long-awaited revisions to these federal law exemptions. The proposed regulations would clarify or eliminate some aspects of the exemptions which have been the subject of frequent litigation, but would likely create new litigation issues as well.

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