New Overtime Rule Delayed

The Solicitor of Labor, Patricia Smith, announced at an American Bar Association conference in November that the final ruling regarding changes in overtime eligibility is not likely to be released until late in 2016.

Overtime rule delayedIf you recall, in its proposed change in June 2015, the Department of Labor (DOL) proposed raising the salary minimum for exempt employees under the Fair Labor Standards Act (FLSA) from $455/week or $23,660 per year to $970 per week or $50,440 per year. More than 250,000 comments were received during the comment period.

According to Smith, the delay is due to the volume of comments received and the complexity of the change. The delay provides additional time for employers to review their workforce for the impact such a minimum salary level change might have. If you haven’t done so already, you should take this opportunity to review who will be affected and plan for changes.

For more information on how to prepare, see our September 23 blog on the topic. The Wall Street Journal also has a good article on the delay.

KMA will keep you posted as changes occur regarding this important issue, and you can contact us with questions.

SHARE