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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 Board of Nursing Proposes Rule Changes for Nurses

January 14, 2026On Monday, January 12, 2026, the Ohio Board of Nursing (“BON”) released a package of proposed changes to the Ohio Administrative Code. There are two proposed changes to continuing education requirements that Ohio nurses should be watching.Client Alert

New Florida Law: Patient Overpayments Must Be Refunded Within 30 Days

December 22, 2025Effective January 1, 2026, Florida Senate Bill 1808 requires health care facilities and practitioners to refund patient overpayments within 30 days after an overpayment is identified. The law applies to overpayments tied to claims submitted to government programs or private insurers and introduces fines and disciplinary consequences for noncompliance. Providers should review billing and payment practices now to prepare for the new requirements.Client Alert

USCIS Policy Change Impacting Work Authorization: Advisory for Employers and Human Resources

December 8, 2025USCIS has issued a policy memorandum pausing immigration benefit processing for individuals from 19 high-risk countries and requiring a re-review of certain previously approved cases. This change may affect work authorization, employment verification, and workforce stability. Employers and HR teams should review impacted employees and update compliance procedures.Client Alert

CMS Releases CY 2026 Medicare Physician Fee Schedule Final Rule with Key Payment and Telehealth Updates

December 4, 2025CMS issued the CY 2026 Medicare Physician Fee Schedule Final Rule on October 31, 2025, with changes effective January 1, 2026. The Final Rule includes increases to the conversion factor, a new efficiency adjustment, updates to practice expense methodology, permanent telehealth policy changes, revised payment for skin substitutes, expanded rules for Part B drugs and biologicals, enhanced policies for Rural Health Clinics and Federally Qualified Health Centers, and new care management and behavioral health services.Client Alert

Ohio Department of Medicaid Updates: Key Changes to Physician Reimbursement Rates in Early Parenthood

December 3, 2025The Ohio Department of Medicaid has proposed amending Ohio Administrative Code Rule related to covered Medicaid reimbursements for physicians. Beginning on January 1, 2026, they are proposing an increase to rates for prenatal care, childbirth, and infant care and provider visits.
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