As announced by the White House this week, President Obama directed the Department of Labor to update the regulations on the white-collar exemptions. Specifically, the President instructed the Secretary of Labor Thomas Perez to update the regulations. The President’s point was that the minimum salary requirements had only been raised once since 1975, and that was in 2004 when the minimum weekly salary was raised from $250 to $455. The directive did not provide any details on what changes would be made. However, the one page memo said that the regulations have not kept up with the modern economy and that millions of workers therefore lack overtime protections.
This memorandum specifically targets both the amount of compensation paid to the lowest level of exempt employees and the specifics of what constitutes an exempt employee. While no guidance has been provided as to what President Obama meant, the toneContinue Reading