1235-AA39 202110 The Regulatory Plan and the Unified Agenda of Federal Regulatory and Deregulatory Actions 1235 Wage and Hour Division WHD 1200 Department of Labor DOL Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees

WHD is reviewing the regulations at 29 CFR 541, which implement the exemption of bona fide executive, administrative, and professional employees from the Fair Labor Standards Act’s minimum wage and overtime requirements.

]]> Economically Significant Previously Published in The Unified Agenda Proposed Rule Stage Yes Undetermined 29 CFR 541 29 U.S.C. 201 et seq. 29 U.S.C. 213 Yes

One of the primary goals of this rulemaking would be to update the salary level requirement of the section 13(a)(1) exemption. A salary level test has been part of the regulations since 1938 and it has been long recognized that the best single test of the employer’s good faith in attributing to the employee’s services is the amount he pays for them. In prior rulemakings, the Department explained its commitment to update the standard salary level and Highly Compensated Employees (HCE) total compensation levels more frequently. Regular updates promote greater stability, avoid disruptive salary level increases that can result from lengthy gaps between updates and provide appropriate wage protection.

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Section 13(a)(1) of the FLSA, codified at 29 U.S.C. 213(a)(1), exempts any employee employed in a bona fide executive, administrative, or professional capacity or in the capacity of outside salesman (as such terms are defined and delimited from time to time by regulations of the Secretary, subject to the provisions of the [Administrative Procedure Act.]) The FLSA does not define the terms executive, administrative, professional, or outside salesman. However, pursuant to Congress’ grant of rulemaking authority, the Department issued regulations at 29 CFR part 541, defining the scope of the section 13(a)(1) exemptions. Congress explicitly delegated to the Secretary of Labor the power to define and delimit the specific terms of the exemptions through notice-and-comment rulemaking.

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Alternatives will be developed in considering proposed revisions to the current regulations. The public will be invited to provide comments on the proposed revisions and possible alternatives.

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The Department will prepare estimates of the anticipated costs and benefits associated with the proposed rule.

 

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This action does not affect public health, safety, or the environment.

]]> NPRM 04/00/2022 Yes Businesses Governmental Jurisdictions Organizations Federal Local State Tribal Undetermined No Yes No Daniel Navarrete Director, Division of Regulations, Legislation, and Interpretation (DRLI) 1235 Wage and Hour Division WHD 202 693-0406 navarrete.daniel@dol.gov 200 Constitution Avenue NW, Room S-3502, Washington DC 20210