CSAC Seeks Comments on DOL Proposed Rulemaking
The United States Department of Labor (DOL) last month published
Notice of Proposed Rulemaking regarding exemptions under the
Fair Labor Standards Act (FLSA). The rule would include public
employees and could have a significant impact on
FLSA was created in 1938 and established the 40-hour work week, federal minimum wage and the “time and a half” pay rate for work performed over the 40-hour work week threshold. Employers are provided with three exemptions from the overtime pay requirement for the following employees:
- those paid $455/week and above.
- those paid on a salary basis
- those who perform exempt job duties (executive, administrative or professional, or “EAP” duties.
The proposed rule would increase the standard salary level from
$455/week to $970/week and increase the annual salary
threshold for exemption as a “highly compensated employee”
from$100,000 to $122,148.
DOL is also requesting comments on the following:
- a potential mechanism for an automatic adjustment of EAP/HCE levels.
- including non-discretionary bonuses when calculating the standard salary threshold.
- modifying the EAP duties test.
DOL will issue a final rule sometime after the comment period
closes (September 4) which will take effect 30-90 days from
CSAC is requesting feedback from counties by Wednesday, September 2. Please submit comments to Faith Conley.