search
cart
facebook twitter linkedin youtube instagram Spotify Podcasts Apple Podcasts Spotify Podcasts Apple Podcasts
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • TOPICS
    • Cool Roofing
    • Event News
    • Latinos in Roofing
    • Low Slope
    • Legal
    • Metal
    • Project Profiles
    • Roofing Supply Pro
    • Roofing Safety
    • Steep Slope
    • Sustainable Roofing
    • Technology
  • EXCLUSIVES
    • Best of Success
    • Contractor Profile
    • IRE Show
    • Roofing Contractor of the Year
      • Enter Roofing Contractor of the Year
    • Top 100
      • Enter the Top 100
    • Young Guns
    • State of the Industry
  • MULTIMEDIA
    • Videos
    • Podcasts
    • Roofing Quizzes
    • IRE Videos
    • Webinars
    • Infographics
  • PRODUCTS
    • New Products
    • Featured Products
  • COLUMNS
    • Editor's Note
    • Exit Planning
    • Guest Column
  • EVENTS
    • International Roofing Expo
    • Webinars
    • Best of Success Conference
    • Industry Events
  • DIRECTORY
    • Associations
    • Distributors
    • Manufacturer/Supplier
    • Business Services
    • Get Listed
  • MORE
    • Roofing Contractor Newsletters
    • Techos y Más Advisory Board
    • RC Store
    • Roofing Supply Pro
    • Custom Content & Marketing Services
    • Market Research
    • Sponsor Insights
    • Company Spotlights
    • Classifieds
      • Auctions
      • Business For Sale
      • Business Opportunities
      • Equipment For Sale
      • Positions Available
      • Products
      • Safety
      • Software
      • Services
      • Training
    • Contact Us
  • EMAGAZINE
    • eMagazine
    • Advertise
      • Editorial Calendar
      • Contact
    • Archive Issues
  • SIGN UP!
Columns

The Department of Labor's Changes to Overtime Rules for 2016 and Beyond

By being proactive, employers can get ahead of the game and limit their exposure.

By Richard Alaniz
department of labor changes
department of labor changes
department of labor changes
department of labor changes
March 7, 2016

Each year the number of wage and hour lawsuits grows. According to the latest statistics released by the Administrative Office of the U.S. Courts, there were approximately 8,781 Fair Labor Standards Act (FLSA) cases filed in 2015 — a 7.6-percent increase over 2014. Since 2000, the number of wage and hour filings in federal court has increased by more than 450 percent.

Employers also paid approximately $400 million in 2014 alone to settle wage and hour lawsuits, with an average payment of $5.3 million per employer, according to the consulting firm NERCA Economic Consulting. Employers have paid over $3.6 billion since 2007 to settle wage and hour lawsuits.

Today, wage and hour lawsuits represent the largest category of employment-related class action filings. No single factor has driven this rise. However, the economic downturn coupled with an anemic recovery, and an overall increase in class action lawsuits have all helped.

To top it off, the Department of Labor (DOL) revamped the “white collar” exemptions test, more than doubling the minimum salary threshold for exempt employees. The DOL is expected to issue final regulations sometime in 2016, and it’s estimated that the upcoming changes will affect roughly 4.7 million workers, if not more.

When the changes become effective, employers can expect greater scrutiny and a further increase in wage and hour lawsuits. Therefore, it’s important for employers to understand the upcoming changes to the overtime rules and to begin preparing now.

Wage and Hour Law

The federal FLSA, passed in 1938, guarantees a minimum wage to almost all employees and requires overtime when employees work more than 40 hours in any workweek. There are, however, several exemptions. Employees exempt from overtime requirements under federal law most often fall under one (or more) of four “white collar” exemptions: executive, administrative, professional, and computer employees.

Under the FLSA, in order to classify a position as exempt, generally that position must pass both a salary test and a duties test. Currently, the salary test requires a weekly salary of $455 per week ($23,660 per year). The duties test depends upon the exemption, but typically includes:  directing and supervising the work of others; the authority to hire, fire, and promote; exercising independent judgment and discretion; or advanced knowledge in a field.

Under the announced exemption revisions, the DOL has proposed raising the salary test from $455 per week to $970 per week ($50,440 per year). In other words, the DOL is planning to more than double the minimum salary for exempt employees.

The DOL has also proposed raising the salary threshold each year, based upon some unspecified economic indicator.

The last time the DOL changed the standards for exempt employees in 2004, the number of wage and hour lawsuits increased. There were 3,617 FLSA cases filed in 2004, 4,039 in 2005, 4,207 in 2006, and a jump to 7,310 in 2007. The pattern is alarming at best. Consequently, now is a good time to take steps to limit any potential exposure.

Employers have various options for compliance with the new rules. They could simply raise all exempt employees’ wages to at least $50,440 per year. Obviously, this “solution” will be unworkable for many employers. Conversely, employers could simply reclassify every exempt employee making less than $50,440 per year as non-exempt. Once again, this “solution” will also be unworkable in many instances. The appropriate solution will depend upon your company’s specific operations and situation, and there’s no silver bullet solution.

Employers could also explore alternative methods to help limit the impact of the new regulations, such as the fluctuating work week schedule or moving employees to non-exempt salaried status.  However, before making any changes, employers should ensure that they are complying with both state and federal law, which often have different requirements. And employers should remember that alternative arrangements, other than traditional non-exempt or exempt status, often lead to inadvertent violations of the FLSA.

Take Action

Whatever steps a company chooses to take to address the problem, clear communication with affected employees will be paramount. Employees who are reclassified as non-exempt will require a clear explanation why, as well as an explanation of new requirements, such as keeping track of their time. In addition, some employees may need to be let go and some jobs may need to be restructured.

Employers should not wait until the final rule is released to begin this process. The company-wide review and subsequent decision-making will take time. Ensuring adequate time to make the best informed decision for your company will be important.

Wage and hour complaints have become the most commonplace employment-based lawsuits, and a change in the law frequently results in an increase in lawsuits filed. By being proactive, understanding the new rules, and taking action now, employers can get ahead of the game and limit their exposure.

KEYWORDS: construction employment Department of Labor EEOC (Equal Employment Opportunity Commission) employee relations NLRB (National Labor Relations Board)

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Richard D. Alaniz is senior partner at Alaniz and Schraeder, a national labor and employment firm based in Houston. He has been at the forefront of labor and employment law for over thirty years, including stints with the U.S. Department of Labor and the National Labor Relations Board. He is a prolific writer on labor and employment law and conducts frequent seminars to client companies and trade associations across the country. For more information, call Alaniz at 281-833-2200.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • QXO TopBuild Graphic

    QXO’s $17B TopBuild Deal Expands Reach Across Roofing And Insulation

    Analysts say the acquisition expands QXO’s reach beyond...
    Roofing News
    By: Tanja Kern
  • A couple stands facing a very nice home

    The Homeowner's Roofing Journey in 2026

    RC asked homeowners what their roofing journey was like,...
    Steep Slope Roofing
    By: Art Aisner
  • I.C. Brewhouse

    9 Tips to Optimize Roofing Operations

    Stacking small, consistent improvements that save time...
    Columns
    By: Sean Moriarty
You must login or register in order to post a comment.

Report Abusive Comment

Manage My Account
  • eMagazine Subscription
  • Sign Up for the Newsletter
  • Online Registration
  • Manage My Preferences
  • Subscription Customer Service

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Roofing Contractor audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Roofing Contractor or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • A layeresd image including metal roofing
    Sponsored byFlashCo

    5 Common Misconceptions about ES-1 Edge Metal

  • A house protected during a hailstorm
    Sponsored byTAMKO®

    Rethinking Roof Resilience: How HailGuard™ Shingles Aim to Shift the Conversation on Hail Protection

  • A residential roof with GAF Timberline shingles in Chestnut
    Sponsored byGAF Residential

    Selling Shingles on Beauty and Performance

Popular Stories

Brad Jacobs

10 Big Roofing Takeaways From Brad Jacobs’ QXO Investor Q&A

contractor

Texas Attorney General Sues Roofing Contractor for Alleged Scam

JRC CEO Caleb Johnson

JRC Inc.: Family Roots, National Reach

Events

December 7, 2026

Best of Success

Join roofing professionals from across the nation at the 2026 Best of Success conference, the ultimate destination for roofing professionals seeking the latest industry insights and networking opportunities. Pick up strategies for critical challenges like workforce shortage with innovative solutions, explore the latest advancements in roofing technology and sustainable practices, and gain valuable insights from industry leaders on navigating the evolving roofing landscape.

View All Submit An Event

Related Articles

  • Federal Court Blocks New Overtime Rules … For Now

    See More
  • U.S. Department of Labor logo

    Department of Labor Ends Program That Allowed Employers to Self-Report Federal Minimum Wage and Overtime Violations

    See More
  • clock-overtime

    Department of Labor Raises Overtime Eligibility Threshold to $43,888

    See More

Related Products

See More Products
  • Green Roof Systems: A Guide to the Planning, Design and Construction of Building Over Structure

  • framing.jpg

    Complete Book of Framing: An Illustrated Guide for Residential Construction, 2nd Edition - Updated and Expanded

See More Products

Related Directories

  • Labor Sync

    Labor Sync is a mobile time & attendance app that lets you monitor the GPS location of your employees from anywhere, in real time. Available in 17 languages. Only $10/month per employee.
×

Be in the forefront of the roofing industry!

Join thousands of professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • Newsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Instagram
    • YouTube
    • X
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2026. All Rights Reserved BNP Media, Inc. and BNP Media II, LLC.

Design, CMS, Hosting & Web Development :: ePublishing