White Collar Exemption Challenged

Twenty-one states are challenging the pending changes to the White Collar Exemptions in a law suit filed in the past several days. A few hours after the states filed their suit, several business groups also filed a similar suit.

As we discussed in our recent state meetings and on this blog, the white collar exemption is an exemption from overtime for various white collar jobs including many executive and administrative type positions. The base minimum salary is moving to $913 per week on December 1, 2016 to qualify for the exemption. Many small businesses are very concerned about the impact of the new rules.

Until more is known, our advice will remain the same. Prepare  as if the new salary levels will be the rule. We can’t count on the courts to toss or even delay this rule change. Please take a look at any employees that are currently exempt and whether this base salary change will affect your employees.

Give us a call if you have any questions.