Senate Action Delays Green Light on Overtime Regulations

As we reported to you in April 2003, and as most of you know, the Department of Labor has proposed significant revisions to the “white collar” exemption rules governing which employees may be entitled to overtime under the Fair Labor Standards Act. The proposed regulations, which would directly affect the overtime pay practices of virtually every employer, created a political firestorm and led to Congressional efforts to block their implementation. After veto threats by the White House, late last year the House and Senate negotiators decided to remove any restrictions on the new regulations from a pending omnibus spending bill – clearing the way for the implementation of the new regulations early this year. All that remained was a final Senate vote in January authorizing the omnibus spending bill.