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Employment Law General Counsel and In House Counsel Law Firm Management Regulation Wage and Hour Litigation

Overtime Pay Morass: FLSA Overhaul to Take Effect on Dec. 1

The new DOL regulations that will take effect on Dec. 1, 2016 do not precisely resolve the present overtime eligibility debate; the absence of clarity remains a material issue especially with respect to highly compensated individuals or large groups of employees who are not easily classified.

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For most corporations, there are significant financial consequences at stake when classifying which employees are required to be paid overtime compensation and which are “exempt” under applicable guidelines, specifically pursuant to the Fair Labor Standards Act (FLSA). The new Department of Labor (DOL) regulations that will take effect on Dec. 1, 2016 (2016 Final Rule) (81 FR 32391, 29 CFR Part 541) do not precisely resolve the present overtime eligibility debate; the absence of clarity remains a material issue especially with respect to highly compensated individuals or large groups of employees who are not easily classified. See http://federalregister.gov/a/2016-11754. Moreover, the changes that were enacted are hotly contested and will be expensive to many employers.

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