UPDATE: DOL NEARS IMPLEMENTING LANDMARK RULE ABOLISHING OVERTIME EXEMPTION FOR EMPLOYEES MAKING LESS THAN $50,000

2016 is almost upon us.  As previously discussed, businesses need to plan now for new regulations that will go into effect abolishing the overtime exemption for all currently salaried employees that make less than $50,000 per year.

When enacted, the regulations will greatly reduce businesses’ ability to claim executive, administrative, professional, outside sales, and computer exemptions under the Fair Labor Standards Act (FLSA). The regulations will affect millions of workers and their employers.

WHEN EXACTLY WILL THE NEW REGULATIONS GO INTO EFFECT AND HOW WILL WE KNOW?

I am receiving a number of questions about the new regulations, including “when exactly will they go into effect?” and “will we have any advance notice?”

Here are the answers:

  • The new regulations are almost sure to go into effect in 2016.
  • Businesses will likely have 60 days’ notice before the change in the law.

Because of the 2016 presidential and other elections, there is virtually no chance the DOL would wait until 2017 to implement the new regulations.   Neither the DOL nor the Obama administration will risk a conservative victory and a shift back towards “pro business” policies.

Earlier this week I emailed the DOL regarding how much advance notice we can expect.  I received the following response:  “We will not know the effective date of the final rule until the Final Rule publishes sometime in 2016.  Typically, the effective date is sixty days after publication of a final rule.”

CONCLUSION

Plan now for the new rule changes — which are discussed in more detail here and here.  This way, when the 60 day notice arrives, your business will transition smoothly — as opposed to undergoing a rushed fire-drill that may lead to mistakes.

Speaking of mistakes:  understand, the DOL will be closely watching businesses to ensure they do not attempt any end-runs around the new regulations.  So, while business creativity is normally to be applauded, make sure that your business does not pay, classify, or otherwise treat employees in a way that might violate the Fair Labor Standards Act.

In any event, HR Law Insider and Bourque Law Firm will stay on top of any new developments in the pending rules and will immediately announce when they are enacted.  Until then, enjoy Bruce Springsteen’s awesome salute to Bob Dylan’s salute to the fact that The Times They Are a Changin’:

 

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