Obama Executive Order on Overtime Regulations Expected

This week, the Obama Administration announced its plans to issue an Executive Order requiring the Department of Labor (DOL) to make changes to the regulations governing which employees are entitled to overtime under the Fair Labor Standards Act (FLSA).  While the details of the Executive Order have not been released, it is expected to increase the minimum pay employees must receive to qualify as exempt from $455 per week to $984 per week. In addition to the minimum pay requirements, employees must also perform certain types of work to qualify for the exemption.  The primary duties test, the evaluation typically used to determine whether the type of work an employee is performing qualifies for the exemption, is also expected to change. Both changes are expected to have an impact on the construction industry.  It is expected that the DOL will begin the rulemaking process later this year, which will include an opportunity for public comments.  AGC will continue to evaluate the Executive Order and will comment appropriately when given the opportunity. For information on the FLSA as it exists currently, visit the DOL website  or  the Labor and HR Topical Resources section of the AGC website.  The primary category is “compensation” and the secondary category is “Fair Labor Standards Act.” For more information, please contact Jim Young at (202) 547-0133 or youngj@agc.org.