b'LEGALOvertime Rule Issued Setting New Overtime Exemption RequirementBy Steven Bers, Esq., Whiteford, Taylor and PrestonO n September 24, 2019, the U.S. Department of LaborThe fi nal rule does not change the duties tests under the (DOL) issued its final version of the much antici- white collar exemption. That is, to qualify supervisors pated overtime exemption rule applicable to super- or managers must still show that they exercise non-routine visors and managers, raising the minimum salary thresholdjudgment in their employment responsibilities, overseeing required to qualify for the Fair Labor Standards Acts (FLSA)a section of the business or one of the business operational white collar exemptions to $35,568 per year, or $684 perfunctions. The new rule also rejects a proposal that salary week.This revision follows a federal courts rejection twolevels automatically increase every three years.Under the years ago of a much larger proposed base salary thresholdproposed rule, DOL retains the fl exibility to consider whether increase to qualify for an overtime exemption, which allowsor when salary levels should be adjusted in the future.vessel owners to pay a fl at salary to qualifying managers, re- Now that the original proposed base-salary threshold gardless of hours worked. rule has been dropped in favor of a new rule that is likelyThe FLSA is the federal law that governs minimum wageto withstand critical review, it is important for all vessel and overtime pay for all hours worked. Since 2004, whiteindustry employers who have white collar exemption collar exemptions could apply where workers met certainemployees assure that their current salary meets the new duties tests and are paid on a salary basis of at least $455 perthreshold level of $35,568 per year.If the employee claimed weekor $23,660 per year.These workers paid at that levelto be exempt receives less than that annual salary, he or she are (through the end of 2019) considered exempt under thewill not be entitled to the exemption as of January 1, 2020. FLSAs executive, administrative, professional or outsideIf any changes are needed, they should be made prior to sales exemptions. January 1, 2020.34OCTOBER 2019FOGHORN'