Entrepreneurs should be paying close attention to proposed federal changes to the "white collar" exemptions of the federal minimum wage and overtime law, otherwise known as the Fair Labor Standards Act (or FLSA).
Changes that the Department of Labor (DOL) proposed earlier this month, if enacted, could cost entrepreneurs big.
To understand the proposals first requires understanding those five FLSA white collar exemptions. They are: executive (supervisory), learned/creative professional, administrative, outside sales and computer professional. Any employee who falls under one of these exemptions is ineligible for overtime. (An employee gets the benefit of federal, state or local law — whichever is best for him or her. This article focuses on federal law only.)
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Jonathan A. Segal is a managing partner at Duane Morris LLP and a member of the firm's Employment Services Group. He is a routine contributor to SHRM, Fortune, Entrepreneur, and Businessweek as an employment law specialist. You can find him on Twitter @Jonathan_HR_Law .
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.
