USDOL is now in the final stages of a formal rulemaking process that could result in the most significant overhaul of federal overtime exemption eligibility requirements in more than 35 years. The proposed rules changes could more than double the minimum salary required for overtime exemption from the current salary threshold of $455 a week ($23,660 for a full-year worker) to an amount which, by the time the final rule is released, will likely be $970/week ($50,440 for a full year worker).
USDOL released the final rule to OMB on March 15, 2016. This means a final rule could be published as early as April or May. Employers could be expected to comply with the new rules as early as the end of this year or by early next year.
Tony Derosby will discuss the current status and implications of the new overtime rules, which could affect millions of jobs and will have far reaching business implications for virtually every employer with salaried exempt employees. Taken together with movements to increase state minimum wages and new guidance from the Wage Hour Administrator giving an expansive reading to the concept of joint employment, the new overtime rules may be part of a “perfect storm” for employers on the wage hour front.