The Law Office of Diana Macias Valdez - Obama Orders Rule Changes to Expand Overtime Pay

Obama Orders Rule Changes to Expand Overtime Pay

President Obama issued a presidential memorandum directing the United States Department of Labor to "update and modernize" overtime regulations.  While the memorandum offered little detail regarding the specific provisions to be revised, the "white collar" exemptions of the Fair Labor Standards Act ("FLSA"), including the professional, executive and administrative exemptions, were specifically referred to as "outdated" by the President. It is expected that the salary threshold, which is currently $455 per work week, will be increased commensurate with inflation from the last time the salary threshold was adjusted.

During a White House press conference, the President expressed his desire to make more workers eligible for overtime pay and directed Labor Secretary to come up with a plan that would expand the group of workers eligible for overtime pay. It is expected that any changes to the overtime laws will likely not take effect until 2015, after public comment on the Department of Labor's proposed regulations has taken place and final regulations are issued.

A link to the presidential memorandum can be found below.

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