The U.S. Department of Labor has issued revised regulations, effective August 23, 2004, which significantly change the guidelines to define those "white collar" employees who are exempt from overtime pay and those who are not.

The "Fairpay Rule Initiative", which follows a year of debate, changes the basis for making this determination by altering both the "salary test" and the "duties test," the two traditional methods for resolving entitlement issues regarding overtime pay.