The Department of Labor (“DOL”) recently announced that the proposed changes to the overtime white-collar exemption regulation will likely issue in late 2016. This gives employers more time to prepare for the change and ensure compliance with the new rule, which will likely not take effect until 2017.
Earlier this year, the DOL proposed to amend the FLSA’s overtime rule. The amendment would more than double the minimum salary threshold from $23,660 to $50,440 per year and expand the overtime eligibility to more than 4.6 million employees. Approximately 270,000 comments have been posted on the DOL’s website in response to the proposal.
Whether the new rule would also change the primary duties test is still a mystery. The DOL is presumably considering to change it given it requested commentary on the topic. Employers should not only be complying with existing regulations and planning to adjust to the anticipated changes in a timely manner but also be preparing for surprises the final rule may contain.
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