Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Is It Time for Employers to Start Preparing for New Overtime Rules?

Author: Scarinci Hollenbeck, LLC

Date: June 9, 2015

Key Contacts

Back

The Department of Labor is expected to unveil its new overtime rules later this month.

For New York and New Jersey employers, it is never too soon to start preparing for the new overtime rules.

Existing Federal Overtime Laws

Under the Fair Labor Standards Act, employees must receive overtime pay for hours worked in excess of 40 in a workweek at a rate not less than time and one-half their regular rates of pay, unless they are specifically exempted. Where workers are subject to both the state and federal overtime laws, they are entitled to be paid in accordance with the standard that provides the higher rate of pay.

The most notable FLSA overtime exemption covers “executive, administrative and professional” employees and is often referred to as the “white collar” exemption. To qualify, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week ($23,660 annually).

For instance, in order to qualify for the administrative exemption, the employee’s primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers, including the exercise of discretion and independent judgment with respect to matters of significance.

Changes to the White Collar Exemption

Last year, President Barak Obama signed a Presidential Memorandum directing the Department of Labor to update the overtime regulations defining which white-collar workers are eligible to receive pay for hours worked over 40 in a workweek. In his directive, the President highlighted that the threshold has failed to keep pace with inflation, only being updated twice in the last 40 years. As a result, he argues that many lower-paid, salaried workers are not eligible for overtime wages.

The DOL’s proposed amendments to the FLSA’s overtime regulations are expected to significantly increase the salary threshold for overtime pay. Although the exact figure is not yet known, some are predicting it could be as high as $50,000. As more workers fall under the purview of the FLSA, employers should expect overtime suits to rise as well. It is, therefore, a good time for employers to review their policies and procedures.

The proposed rule is currently being reviewed with Office of Management and Budget for review. Once it is released to the public, we will post additional updates, so please stay tuned.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know post image

One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know

Part 1 – Overtime Pay and Income Tax Treatment Overview This Firm Insights post summarizes one provision of the “One Big Beautiful Bill” related to the tax treatment of overtime compensation and related employer wage reporting obligations. Overtime Pay and Employee Tax Treatment The Fair Labor Standards Act (FLSA) generally requires that overtime be paid […]

Author: Scott H. Novak

Link to post with title - "One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know"
New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business post image

New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business

In 2025, New York enacted one of the most consequential updates to its consumer protection framework in decades. The Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Act) significantly expands the scope and strength of New York’s long-standing consumer protection statute, General Business Law § 349, and alters the compliance landscape for New York […]

Author: Dan Brecher

Link to post with title - "New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business"
How to Reduce Legal Risk as Your New Jersey Business Grows in 2026 post image

How to Reduce Legal Risk as Your New Jersey Business Grows in 2026

For many New Jersey businesses, growth is a primary objective for the New Year. However, it is important to recognize that growth involves both opportunity and risk. For example, business expansion often results in complex contracts, an increased workforce, new regulatory requirements, and heightened exposure to disputes. Without proactive planning, even routine growth can lead […]

Author: Ken Hollenbeck

Link to post with title - "How to Reduce Legal Risk as Your New Jersey Business Grows in 2026"
Crypto Investor Protection: SEC and CFTC Enforcement Trends post image

Crypto Investor Protection: SEC and CFTC Enforcement Trends

Crypto investor protection continues to evolve, with the SEC and CFTC investing resources and coordinating more closely to uphold regulatory standards. Whether you’re a retail investor, an institutional trader, or part of a crypto startup, understanding enforcement trends is essential for navigating this dynamic and high-stakes regulatory environment. Crypto Is No Longer the Wild West […]

Author: Dan Brecher

Link to post with title - "Crypto Investor Protection: SEC and CFTC Enforcement Trends"
New Jersey’s Next Manufacturing Tax Credit: Stability Secured, Timing Matters post image

New Jersey’s Next Manufacturing Tax Credit: Stability Secured, Timing Matters

A Settled Regulatory Environment Enables Confident Capital Planning New Jersey’s new manufacturing incentive program, Next New Jersey Manufacturing Program,  enters 2026 with something uncommon in economic development these days: policy stability. The statute is enacted, New Jersey Economic Development Authority’s (“NJEDA”) rules are adopted, and the application portal is open. With the election outcome settled, […]

Author: Michael J. Sheppeard

Link to post with title - "New Jersey’s Next Manufacturing Tax Credit: Stability Secured, Timing Matters"
A Simple Guide to Industry Roll-Up Acquisitions post image

A Simple Guide to Industry Roll-Up Acquisitions

When done successfully, industry roll-up acquisitions can dramatically grow and strengthen your business. In this post, we break down what an industry roll-up is, why companies pursue it, and what makes it an effective (and sometimes risky) business strategy. What Is an Industry Roll-Up Acquisition? In an industry roll-up acquisition of companies, a buyer acquires multiple companies […]

Author: Dan Brecher

Link to post with title - "A Simple Guide to Industry Roll-Up Acquisitions"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!