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New Overtime Pay Regulations: Wait and Hurry Up
By: Jeffrey Hurt

Last week a Department of Labor (DOL) official announced that the much-anticipated changes to the overtime pay rules may not be published until late 2016. That’s not a typo—she really did say 2016. But the flip side is that the rules will become effective shortly after they are published. So employers would be wise to start mapping out their potential compliance strategy now, rather than waiting until the final regulations actually drop.     

As you are probably aware, this past June the DOL issued a proposed regulatory change to the “white collar” exemptions to the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA). The proposal is to increase the minimum salary that must be paid to employees to be exempt (from the minimum wage and overtime requirements of the FLSA ) for most of the “white collar” exemptions from $23,660 annually ($455 per week) to $50,440 ($970 per week) with annual automatic increases thereafter. This change will apply to all employers with white collar exempt employees, private or public sector, profit or not-for-profit.
Since June 30, the Department has received more than 250,000 public comments, which it is obligated to consider before issuing a final rule. In early November, the Solicitor of Labor, Patricia Smith, said the final rule likely will not be published until the fall of 2016 with an effective date as soon as 30-60 days after publication. Most commentators believe that the Department wants the new rule to be effective before the November 2016 general election.      Continue Reading...

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