Compliance with the DOL’s New Overtime Rules: The Exemption Job Analysis

On September 24, 2019, the US Department of Labor announced its final rule to revise regulations that define which employees are exempt from Fair Labor Standards Act (FLSA) protections such as overtime. The most notable revision is an increase to the minimum salary for exempt employees to $684 per week. This rule will expand overtime protections to more than one million employees and will take effect on January 1, 2020. We expect that these revisions will motivate many employers to audit employee classifications to minimize the legal risks associated with misclassification. In this article, we discuss the revisions to the FLSA and describe methods to collect valid and reliable data regarding employees’ job duties to help determine which employees should be classified as overtime eligible. The methodologies we describe are based on our extensive experience evaluating employee classifications in many organizations across a range of industries.

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