The Law @ Work

DOL Sends Overtime Rule to Final Review Stage

by John S. Gannon

Employers have anxiously (and nervously) been anticipating the Department of Labor’s release of its final “white collar” overtime exemption rule.  Many observers expected a release in or around July 2016.  Recently, the Labor Department sent its final rule to the White House Office of Management and Budget (OMB).  OMB review of a final rule is the last step before publication and release of the final rule.  The review typically takes a month or two.  This means employers could see a release of the final rule this spring.  Once the final rule is released, employers may have as few as 60 days to get into compliance.

We do not know yet whether the final rule will model the proposed rule announced last year.  As we previously reported, the Department of Labor’s proposed rule would significantly expand the number of nonexempt employees entitled to overtime compensation.  The Labor Department proposed increasing the 2016 minimum salary threshold to $50,440.  This is more than double the current threshold of $23,660.  In short, this means almost all employees earning less than $50,440 in base annual salary this year will be nonexempt.  Nonexempt employees are entitled to overtime premiums when they work more than 40 hours in a week.  Employers must also keep detailed records for nonexempt employees.  For example, you must keep track of the time and day their workweek begins, how many hours are worked each day, total hours for the week, and total daily and weekly straight-time and overtime earnings.

Attorney John Gannon of Skoler, Abbott & Presser will be discussing the impact of the proposed overtime rule (and more) this Friday during a lunch event for the Chicopee Chamber of Commerce.  Registration is not limited to members, and more information can be found here:


Share this