Information of Interest: DOL Overtime Rule

INARF's national partner ANCOR has provided the following update regarding the Department of Labor's Overtime Rule:

-We expect the final rule may be published as early as this week, but probably no later than the end of May.

-By law, DOL need only provide employers with 60 days to comply with the new regulations.

-Several media outlets have reported the minimum salary level for exemption will be set at $47,000 (rather than the $50,440) as proposed. This info is attributed to a congressional staffer, and although it cannot be confirmed, it is likely a credible source.

-We do not have any other information about changes to the salary or duties tests. However, Tammy McCutchen, Esq, of Littler Mendelson is predicting that the final rule: (1) will provide for annual increases based on inflation; (2) will not allow employers to count bonuses towards the minimum salary level; and (3) may make changes to the duties tests to limit the amount of time exempt employees may perform non-exempt work.

-Legislation has been introduced to stop the rule, H.R. 4773 / S.2707 -- the Protecting Workplace Advancement and Opportunity Act. If it passes both bodies of Congress, it will surely be vetoed by the President when it reaches his desk. Congressional observers are predicting with confidence that the Republicans will not have the votes to override the President's veto. ANCOR has consistently supported the intent of the proposed rule, advocating more constructively for a reasonable salary threshold (15th percentile/approximately $30,000), and is not supporting this legislation.

-Business groups such as the National Federation of Independent Businesses are rumored to be actively planning to challenge the final rule in court.

We hope this information is helpful. If you have questions, please contact Sarah Chestnut at sarah@inarf.org.