They Are Coming: Final White Collar Overtime Regulations Advance
The Department of Labor (DOL) has now completed its final regulations on the white collar exemptions to overtime under the Fair Labor Standards Act. The DOL submitted the final regulations to the Office of Management and Budget on March 14, 2016 for review and approval. DOL representatives have stated in recent presentations that the goal is for publication to occur in July. The plan is for the final regulations to be effective by the end of the year. With the use of an effective date 60 days after publication, it is possible that the final regulations will be effective before the Presidential election in November (and possibly near Labor Day).
We do not know the content of the final regulations at this point. The DOL is likely to have modified some provisions of the proposed regulations to address comments it received. It is also possible, due to the inclusion in the proposed regulations of a request for comments about the duties tests, that the final regulations will include a modification to one or more of the duties tests for the white collar exemptions. We will need to wait for the publication of the final regulations to determine whether any significant changes were made from the proposed regulations. Download the presentation from our previous webinar, "In-Depth Coverage: DOL Issued FLSA Proposed Regulations"
summarizing the proposed regulations. We plan to present another webinar after the final regulations are published.
While awaiting the final regulations, employers should prepare for and consider their options should the final regulations be substantially the same as the proposed regulations. Employers should take a close look at any exempt employee who is at or near the likely new salary threshold of $50,440. It is also wise for employers to review their current exempt classifications to determine if changes may be needed/desired. Even if modifications are not legally necessary, a change in the law is often a good time to make those modifications. We recommend that these reviews be conducted with the assistance of counsel so that discussions about potential issues are more likely to be protected by the attorney-client privilege.
Please contact Tami A. Earnhart
at (317) 236-2235 or any member of our Labor, Employment & Immigration Group
for assistance in analyzing and considering your options or your current exempt classifications.
This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.