PRESIDENT OBAMA ISSUES EXECUTIVE ORDER REGARDING EXPANSION OF OVERTIME PAY

On March 13, 2014, President Obama issued an executive order requesting that the U.S. Labor Department issue regulations that mandate overtime pay to employees who otherwise would be exempt under the federal Fair Labor Standards Act (“FLSA”).  The administration hopes to qualify employees, such as fast-food managers, office workers and other employees that are currently classified as exempt white-collar employees, for overtime pay under the FLSA.  Generally, these workers are exempt from the overtime requirements of the FLSA because they are deemed to be “administrative, executive or professionals.”

The proposed changes will likely be subject to public comment before final approval by the Labor Department, and may result in modifications of the original proposal.

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