First, let’s discuss the proposed changes to the wage and hour regulations. Via a Presidential Memorandum, President Obama mandated the U.S. Department of Labor (DOL) to update the regulations outlining which white collar workers are protected by the Federal Labor Standard Act’s (FLSA) minimum wage and overtime standards. As a result, DOL published the Notice of Proposed Rulemaking, where three main changes are being proposed. First and foremost, their aim is to update section 13(a)(1) exemption's salary level requirement which has been unchanged since 2004. Second, the Department has proposed to update the total annual compensation required for the Highly Compensated Employee (HCE) exemption which has also been …show more content…
Therefore, they have issued the Administrator’s Interpretation 2015 where guidance is provided to employers and employees to avoid misclassification. Just last year, the Wage and Hour Division investigated hundreds and hundreds of cases of more than 109,000 workers in various industries that resulted in over $79 million in back wages. Thus, twenty six states have decided to take an initiative along with the Department to Labor in the past few years to prevent misclassifications. Many states’ agencies are signing a three year agreement pledging to protect workers from