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

Client Alert
September 18, 2023

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 Division, Bryan Meek, at bmeek@bmdllc.com.

DOLU.S. Department of LaborovertimeJohn ChildsBryan Meek
Client Alert

Ohio House Bill 537: Proposed Regulations for Midwives and Birthing Centers

January 28, 2026House Bill 537, introduced in the Ohio House of Representatives, proposes a comprehensive regulatory framework for certified nurse-midwives, certified midwives, licensed midwives, and traditional midwives. The legislation would clarify scope of practice, establish licensure standards, and impose new requirements for freestanding birthing centers and home births. Healthcare providers and facilities should be aware of the proposed changes and their potential operational impact.Client Alert

Proposed Health Information Privacy Reform Act Expands Protections Beyond HIPAA

January 26, 2026The Health Information Privacy Reform Act (HIPRA) seeks to extend privacy protections to health data not covered under HIPAA, including data collected by apps and wearables. HIPRA introduces broader definitions of protected health information, strengthens privacy and security requirements, establishes patient notification rights, and sets national de-identification standards. Companies processing health data should monitor developments to ensure compliance.Client Alert

Medicare Updates on Skin Substitutes: LCDs Withdrawn, Payment Changes Take Effect

January 23, 2026Medicare’s planned Final Local Coverage Determinations (LCDs) for skin substitutes were withdrawn in late December 2025, meaning previous coverage rules remain in effect. The 2026 Medicare Physician Fee Schedule introduces a single payment rate of approximately $127.14 for these products. Providers should review implications for diabetic foot and venous leg ulcer treatments.Client Alert

Understanding the Seven Core Elements of an Effective Healthcare Compliance Program

January 22, 2026The Affordable Care Act requires healthcare providers participating in Medicare, Medicaid, and CHIP to maintain an effective compliance program. Guidance from the Department of Health and Human Services and the Office of Inspector General outlines seven core elements that form the foundation of these programs, from written policies and compliance oversight to auditing, training, and corrective action. This alert highlights each element and explains how practices can tailor compliance programs to their size and risk profile while meeting federal expectations.Client Alert

Preventing a Board Investigation

January 21, 2026Healthcare professionals in Ohio are subject to licensing board investigations that can lead to disciplinary action. Staying compliant with regulations, documenting carefully, and operating within your professional scope can help prevent issues. If contacted by a board, working with an attorney is critical to protect your license and rights.
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