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You are the owner of a small chain of hotels, and you are concerned about the United States Department of Labor’s (DOL) new rules under the overtime provisions of the Fair Labor Standards Act. In order to be eligible for one of the white-collar exemptions to the overtime rules, you must pay an employee a minimum weekly salary of $455 per week, or $23,660 per year, whereas the previous threshold was $250 per week. Employees making less than $455 per week generally cannot be exempt. This will cost you money either in overtime pay or higher salaries. Can you challenge this new DOL rule? How would you go about challenging it? (26 points) (A 1-page response is required.)
You are also concerned that the DOL may increase this salary minimum again or make it more difficult to classify employees as exempt from overtime in the near future. Discuss at least four (4) methods you can use to address your concern? (24 points) (A 1-page response is required.)