Labor Costs May Soar for Entrepreneurs
Posted 07.20.15
Jonathan A. Segal

Entrepreneurs should be paying close attention to proposed federal changes to the “white collar” exemptions of the federal minimum wage and overtime law, otherwise known as the Fair Labor Standards Act (or FLSA).

Changes that the Department of Labor (DOL) proposed earlier this month, if enacted, could cost entrepreneurs big.

To understand the proposals first requires understanding those five FLSA white collar exemptions. They are: executive (supervisory), learned/creative professional, administrative, outside sales and computer professional. Any employee who falls under one of these exemptions is ineligible for overtime. (An employee gets the benefit of federal, state or local law — whichever is best for him or her. This article focuses on federal law only.)

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About Jonathan A. Segal
Jonathan A. Segal is a partner at Duane Morris LLP in the Employment Group. He is also the managing principal of the Duane Morris Institute. The Duane Morris Institute provides training for human resource professionals, in-house counsel, and other leaders at client sites and by way of webinar on myriad employment, leadership labor, benefits and immigration topics. Jonathan has served intermittently as a consultant to the Federal Judicial Center in Washington, D.C. for more than 20 years, providing training on employment issues to federal judges around the country. Jonathan also has provided training on harassment on behalf of the EEOC as well as providing training on diversity to members of the United States intelligence agencies. Jonathan is also frequently a featured speaker at national, state and local human resource, business and legal conferences, including conferences sponsored by the Society for Human Resource Management and the Pennsylvania State Chamber of Business and Industry. Jonathan’s practice focuses on maximizing compliance and minimizing legal risk. Jonathan’s particular areas of emphasis include: equal employment opportunity in general and gender equality in particular: social media; wage and hour; performance management; talent acquisition; harassment prevention and correction; and non-competes and other ways to protect your business. You can find him on Twitter @Jonathan_HR_Law .