Vague Definitions On Overtime Pay Open Door to Litigation

New York Law Journal

In March 2003, the Depart­ment of Labor (DOL) proposed first major modifications to the Fair Labor Standards Act (FLSA) in 25 years, intending to satisfy both employers' desires for less ambiguous regula­tory requirements with employees’ desires to limit exemptions to high-wage workers, preserving the 40-hour standard workweek, and the statutory right to overtime pay for as many employees as possible. However, the Senate blocked the regulations in September 2003, and many studies suggest this proposal evidences naïve economics. This in-depth article discusses several options and consequences.