How do the final FLSA white-collar regulations interact with other laws?

The FLSA provides minimum standards that may be exceeded, but cannot be waived or reduced. Employers must comply with any federal, state or municipal laws, regulations or ordinances that are more favorable to workers. Similarly, employers may, on their own initiative or under a collective bargaining agreement, provide a higher wage, shorter workweek, or higher overtime premium than provided under the FLSA. While collective bargaining agreements cannot waive or reduce FLSA protections, nothing in the FLSA or the Part 541 regulation relieves employers from their contractual obligations under such bargaining agreements.

The final FLSA white-collar regulations present a confusing situation in terms of how they will interact with state law. Eighteen states have their own wage-hour laws, and many of those laws correspond to the federal rules that are being replaced. To eliminate confusion, states may take legislative or regulatory action so that state law reflects the new federal rules. However, some states may choose not to act at all if current state law is viewed as being more generous to workers. As a result, employers end up in the predicament of having to comply with state law, with elements of the old and new regulations.

As an example, Illinois enacted a law protecting workers from the final federal rule changes. The state law maintains the pre-March 2003 status quo as to the duties tests for employees within the state, while allowing the increased salary floor in the new federal rule.

Similarly, the Labor Commissioner of New Jersey has announced that the state's law and regulations are more protective of workers' rights to overtime than the new federal rules. Therefore, the state rules are those which must be followed by private sector businesses. New Jersey's wage and hour rules do not apply to public employees or school board employees, and so the federal overtime rules may have a greater impact on them. However, most of those workers are covered by collective bargaining agreements.