In a March 2014 Memorandum, President Obama directed the Department of Labor to “modernize and streamline” the regulations that dictate when an employer may lawfully designate an employee as exempt from overtime pay under the Fair Labor Standards Act. In doing so, the Department will consider the intent of the Act, the ever-changing nature of the workplace, and the inability of many employers and employees to understand the exemptions and their intended application.
This confusion over the regulations is likely one of the reasons contributing to the alarming rise in the number of new wage and hour suits. According to the Bloomberg BNA’s Daily Labor Report, more than 8,000 wage and hour lawsuits were filed in federal court in the year-long period ending March 31, 2014.
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