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Much Ado About Very Little: Revised Overtime Pay Regulations

By R. Michael Smith
July 01, 2004

The publicity and Congressional reaction surrounding the United States Department of Labor (DOL)'s proposed changes to the overtime pay regulations suggests that those modifications would result in a radical departure from the existing state of the law. An objective review of the changes, however, as initially proposed and as finally implemented reveals that the DOL actually did little to alter the legal landscape.

Indeed, the revised regulations will probably do nothing to clarify the application of the white-collar employee exemptions under the Fair Labor Standards Act (FLSA) or to reduce the increasing volume of litigation against employers who mistakenly classify personnel. As a consequence, the DOL will not accomplish either of its stated goals in undertaking

the revision of the regulations. Moreover, the DOL's recent effort will unfortunately postpone for the foreseeable future the real regulatory reform that is genuinely needed in an area that directly affects millions of employers and employees.

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