Wednesday, March 16, 2016

SWEEPING DOL OVERTIME EXEMPTION CHANGES ARE COMING SOONER THAN ANTICIPATED

EMPLOYERS BEWARE!!!

Yesterday, the U.S. Department of Labor delivered to the White House's Office of Management and Budget its final rule on the minimum salary level for exempt status from the FLSA's overtime pay requirement. the U.S. DOL proposed to more than double the minimum salary to qualify for the FLSA's white collar overtime exemptions (from $23,660 to $50,440). Estimates indicate that between 5 and 6 million America workers could be reclassified from exempt to nonexempt status. Review by the OMB is the final step before the final rule is made official. This typically takes no more than one to two months and some are saying the White House will act even sooner. As a result, predictions by business groups and advisors stating that the DOL's final rule would issue in July may be off by several months. With the final rule coming as early as April, 2016, any employer with employees who may be reclassified from exempt to nonexempt (thus being entitled to overtime pay) must prepare immediately for these sweeping changes, if they have not already done so.

Originally published in Wessels Sherman newsletter on 03/16/2016. Authors: James B. Sherman, Esq. and Sean F. Darke, Esq.

(Emphasis (in last sentence) added by me.) I did not copy the whole article, and I did make some minor changes in the article.

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