Fair Labor Standards Act: White-Collar Exemptions in the Modern Work Place
HEHS-99-164
Published: Sep 30, 1999. Publicly Released: Sep 30, 1999.
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Highlights
Pursuant to a congressional request, GAO provided information on employer compliance with the white-collar exemptions under the Fair Labor Standards Act (FLSA), focusing on: (1) how many employees are covered by the white-collar exemptions and how the demographic characteristics of these employees have changed in recent years; (2) how the statutory and regulatory requirements have changed since the enactment of FLSA; (3) the major concerns of employers regarding the white-collar exemptions; (4) the major concerns of employees regarding the white-collar exemptions; and (5) the possible solutions to the issues of concern raised by employers and employees.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Labor | The Secretary of Labor should comprehensively review the regulations for the white-collar exemptions and make necessary changes to better meet the needs of both employers and employees in the modern work place. Some key areas of review are: (1) the salary levels used to trigger the regulatory tests; and (2) the categories of employees covered by the exemptions. |
Closed – Implemented
Labor convened a series of stakeholder meetings in 2002, to review the regulations for white-collar exemptions, including the salary levels used to trigger the regulatory tests and the categories of employees covered by the exemptions. After much review and consideration of stakeholder comments, in March 2003, Labor published proposed revisions in the Federal Register to the regulations. These revisions seek to clarify exemption categories and definitions and update the salary levels used to determine whether a worker is exempt.
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