On October 20, 2011, the Computer Professionals Update Act (“the CPU Act”) – one of the first potential pieces of good news for employers this year – was introduced in the U.S. Senate. If passed, the CPU act would expand the computer employee exemption of the Fair Labor Standards Act (“FLSA”). S. 1747.
Unlike much of the other legislation affecting employers that has been proposed or passed this year, the CPU Act would make business easier for employers and decrease the risk of employee misclassification lawsuits. If the proposed legislation passes, employers would be able to classify more employees as exempt from the overtime provisions of the FLSA. This would be a welcome change from the persistent drum beat of enhanced enforcement initiatives announced by government agencies and upticks in class and collective actions this year.