Dive Brief:
- The U.S. Department of Labor (DOL) had indicated that its final, potentially controversial overtime rules are due to be published in July, but there are signs to suggest they may be released earlier, according to a National Law Review article.
- Washington, D.C.'s adversarial climate plus the presidential election are potential reasons why the DOL may be hurrying. The Congressional Review Act gives Congress 60 legislative days to review any federal agency final rule, meaning the GOP-controlled Congress could pass a resolution nullifying the OT rule.
- The current salary threshold for white collar exemptions is $23,000, but the new rule is set to move the threshold to more than $50,000 per year, meaning employers need to get ready now, according to National Law Review.
Dive Insights
The proposed rule has created a lot of buzz, mainly from employers who will have to make major adjustments to their current compensation strategies if and when the rule takes effect.
A shorter timeline for the new rule means employers need to take steps now to decide how to handle employees who would no longer qualify as exempt, according to the National Law Review. For example, some employers have the option to boost exempt employee salaries to match the new threshold, whatever it is, in order to have the exemption. Another option is to change worker status of some to non-exempt and pay overtime.
Either way, employers must act quickly to avoid potential legal wage and hour claims should the final rule take effect.