Authored by Alex Passantino

As we expected when we reported on this yesterday, President Obama today signed a Presidential memorandum directing the Secretary of Labor to “restore the common sense principles” related to overtime.  In his remarks, President Obama focused on his belief that overtime protections have “eroded,” that “if you work more, you should be paid more,” and that “millions” of workers who currently are eligible for the FLSA’s overtime exemption should not be. 

The President’s remarks indicate that any regulatory proposal will represent a fundamental change.  Although the President mentioned that there will be some efforts at clarification and simplification, it is clear that the end goal for these regulatory revisions will be to dramatically decrease the number of employees for whom employers may claim an overtime exemption.  

The details are still sparse, with the President directing the Secretary to consider how the regulations could be revised to:

  •  Update existing protections in keeping with the intention of the Fair Labor Standards Act.
  • Address the changing nature of the American workplace.
  • Simplify the overtime rules to make them easier for both workers and businesses to understand and apply.

During his remarks, the President indicated that the Administration would be listening to both employers and employees during the course of the regulatory process.  We will, of course, continue to keep you updated with the latest developments.  Join us during our webinar as we discuss what we can expect in the coming weeks and months.

UPDATED 3-13-14:

The Presidential Memorandum has been posted.

 

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