The Fair Labor Standards Act requires overtime pay for hours worked above forty in a week, but exempts certain "white-collar" employees who meet duties tests and earn above a salary threshold set by the Department of Labor. The threshold has been updated only intermittently and has lagged inflation for long periods, leaving its real value to erode between updates.
Recent administrations have proposed substantial increases — some upheld by courts, others enjoined. Litigation typically turns on the level chosen, the speed of automatic indexing, and whether the rule effectively rewrites the duties test through salary alone.
Supporters of higher thresholds argue they restore overtime protection to millions of salaried workers earning modest pay and put a hard floor on what counts as an "exempt" salary. Critics warn rapid increases force restructuring of workforces, particularly at small employers, nonprofits, and in lower-cost regions.