Constangy partner Jim Coleman was quoted by the Society for Human Resource Management (SHRM) on March 8 discussing questions that surround the Department of Labor’s proposed changes to the overtime rule. Namely, it remains to be seen how high the DOL will raise the salary level threshold for the white-collar exemptions to the rule, which Coleman expects to be fairly high.

"With inflation being what it is, and so many states having minimum hourly wage rates that far exceed the FLSA rate, I think it is likely we will see some aggressive increases proposed by the Biden DOL," Coleman said.

As employers brace for this potential increase, Coleman added that, absent a successful court challenge, employers should be prepared once a new rule is finalized to make difficult decisions about whether to raise salaries to maintain exempt classifications or reclassify exempt employees to nonexempt status and pay overtime under the FLSA.

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