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Wage and Hour Litigation Developments and Trends Introduction Cristina Banks Lamorinda Consulting, LLC. and University of California, Berkeley Chester Hanvey Berkeley Research Group, LLC. We write this article to inform SIOP members interested in the Fair Labor Standards Act (FLSA) and in employee protections in general of important proposed changes to this law by the Depart- ment of Labor as a result of a directive from President Obama “to modernize and streamline” the FLSA regulations. Should these changes be put in place, the number of employees covered un- der this law will expand by millions of new nonexempt employ- ees. Other important changes are a result of the Department of Labor’s cooperation with the IRS to crack down on misclassified independent contractors and the treatment of expert testimony involving sampling and statistical evidence in wage and hour class actions. The ramifications of such pivotal changes are extensive and will have immediate and dramatic effects on organizations when and where these changes take effect. Three primary changes have been proposed: (a) changes to FLSA overtime exemption criteria, (b) increased enforcement of the independent contractor misclassification, and (c) in- creased scrutiny regarding the use of sampling and statistical evidence in wage and hour class actions. We discuss these changes and anticipated consequences below. Changes to FLSA Overtime Exemption Criteria In July 2015, the U.S. Department of Labor (DOL) released a much-anticipated proposal to revise federal regulations that de- fine which employees are “exempt” from FLSA protections. The DOL proposal was in response to a 2014 directive from Presi- dent Obama to “modernize and streamline” the FLSA regula- tions (see Executive Office of the President, 2014). The directive was widely publicized at the time (e.g., Shear & Greenhouse, 2014) and intended to address the concern that current regu- lations have “failed to keep up with inflation, only being updat- ed twice in the last 40 years and leaving millions of low-paid, salaried workers without these basic [FLSA] protections” (Office of the Press Secretary, 2014). 80 January 2016, Volume 53, Number 3