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The U.S. Department of Labor Proposes FLSA Changes to Give Millions of Workers Overtime Pay Protection

Client Alert

On August 30th, the U.S. Department of Labor (DOL) announced a Notice of Proposed Rulemaking (NPRM) proposing new regulations to guarantee overtime pay protection for millions of employees. Specifically, the NPRM proposes to change the federal Fair Labor Standards Act (FLSA) regulations with the following:

  • Increase the salary threshold for bona fide executive, administrative, and professional (EAP) employees from $35,668 annually to $55,068,
  • Increase the salary threshold for highly compensated employees (HCE) from $107,432 annually to $143,988,
  • Apply these salary changes to U.S. territories and to employees in the motion picture industry, and
  • Automatically update these earning thresholds every three years with current wage data.

The FLSA establishes minimum wage and overtime pay for employees in the private sector and in federal, state, and local governments. Non-exempt workers are guaranteed a federal minimum wage of $7.25 per hour and overtime pay of not less than one and one-half times their regular pay rate after 40 hours of work in a week.

Current FLSA regulations provide that EAP employees who earn a salary of $35,668 annually and perform duties within the EAP description (e.g., management, directing the work of others, performance of work requiring advanced knowledge, etc.) are exempt from FLSA protection. Similarly, current FLSA regulations exempt HCEs who earn a salary of $107,432.

EAP regulations were last updated in 2019. The DOL noted that keeping the earnings threshold up to date would benefit both workers and employers. Further, the DOL hopes FLSA thresholds reflect current economic conditions. In the first year, the DOL has estimated that 3.4 million workers exempt under current regulations will become newly entitled to overtime protection if the NPRM goes into effect.

The NPRM will be open for public comment for 60 days to consider comments before issuing a final rule. While it is uncertain when the NPRM could be finalized or whether it would be upheld by courts, employers should start to prepare for its potential issuance by re-considering exemptions in their current workforce.

Should you have any questions concerning the NPRM, please contact BMD Member John Childs at jnchilds@bmdllc.com or BMD Labor & Employment Partner and Co-Chair of its Labor & Employment DivisionBryan Meek, at bmeek@bmdllc.com.


LGBTQIA+ Patients and Discrimination in Healthcare

In early April, the Kaiser Family Foundation released a study outlining the challenges that LGBT adults face in the United States related to healthcare. According to the study, LGBT patients are “twice as likely as non-LGBT adults to report negative experiences while receiving health care in the last three years, including being treated unfairly or with disrespect (33% v. 15%) or having at least one of several other negative experiences with a provider (61% v. 31%), including a provider assuming something about them without asking, suggesting they were personally to blame for a health problem, ignoring a direct request or question, or refusing to prescribe needed pain medication.”

Ohio Recovery Housing Overhaul: New Standards and Certification Requirements Reshape Sober Living Spaces

Ensuring Fair Access: SB 269 Protects Affordable Medication for Low-Income Patients

SB 269, introduced on December 19, 2023, will ensure that 340B covered entities, including Federally Qualified Health Centers, Ryan White Clinics, disproportionate share hospitals, and Title X clinics, can acquire 340B drugs without facing undue restrictions or discriminatory practices from drug manufacturers and distributors. This protection is crucial for 340B covered entities to continue to provide affordable medications and comprehensive services to low-income patients.

Unveiling Ohio's Pharmacy Board Updates for Distributors, Mobile Clinics, and Controlled Substances

The Ohio Board of Pharmacy will hold a public hearing on May 28, 2024, to discuss several proposed changes and additions to Ohio Administrative Code (OAC). These changes pertain to terminal distributors of dangerous drugs (TDDDs), mobile clinics or medication units, and the classification of controlled substances.

House Bill 249: Key Updates to Involuntary Hospitalization Law for Mental Health Providers

House Bill 249 (HB 249) proposes changes to Ohio Revised Code (ORC) Sections 5122.01 and 5122.10 to expand the conditions under which a person with a mental illness can be involuntarily hospitalized.