Earlier this week, the U.S. Department of Labor submitted its final overtime rule to the Office of Management and Budget (OMB) for review. While the final rule has not yet been released, we know that the primary focus of the DOL’s initial proposed rule, published last July, is to increase the salary required for an employee to qualify under the professional, executive, administrative, or computer exemptions. Under the initial proposed rule, the weekly salary amount required for exempt classification will increase from $455 per week to $970 per week, for an annual minimum salary of $50,440.00.
The OMB review could take several weeks to several months to be completed. After the review is complete, the final rule will be published in the Federal Register. After publication of the final rule in the Federal Register, employers will have sixty (60) days to begin complying with the new regulations.
We urge employers to plan ahead for the implementation of these regulations including how to best handle the changes in your workforce. We encourage employers to contact any of our attorneys to discuss the best way to make the transition to comply with the new regulations. Changes may involve reclassifying some currently exempt employees to non-exempt status, increasing weekly salaries of employees who are close to the threshold, and other alternatives.
If you have any questions about how you and your company can best prepare for the implementation of the final rules or any other wage and hour matter, please do not hesitate to contact Karen E. Milner, R. Michael Lowenbaum, Robert S. Seigel, Corey L. Franklin, Christopher M. Sanders, David P. Frenzia, Whitney P. Cooney, or Jamie M. Westbrook.