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Overtime Changes to Take Effect December 1, 2016

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A Department of Labor (DOL) final rule is set to increase the salary threshold for the “white collar overtime exemptions” to $47,476 per year. Recent challenges to the rule have left some questioning whether it will take effect on Dec. 1, 2016, as scheduled.

  • The U.S. House of Representatives passed R. 6094, which would delay implementation of the final rule. The bill would have to be passed by the Senate and approved by the president before it becomes law. President Barack Obama has threatened to veto the bill.
  • A coalition of 21 states and a number of business groups have filed lawsuits challenging the rule. A hearing is scheduled for Nov. 16, 2016, to determine if an injunction will be issued.

Unless the bill is passed into law or a court orders a delay, the DOL’s overtime rule will take effect on Dec. 1.

ACTION STEPS

Employers should be prepared to comply with the DOL’s new overtime final rule by Dec. 1, 2016. Actions needed for compliance may include raising salaries of currently exempt employees or paying overtime to employees who will no longer be exempt. Specific actions will depend on a number of factors related to each employer’s workforce.

D’Camera Group, LLC will continue to monitor these developments and provide updates as necessary.

 

HIGHLIGHTS

·      Despite challenges to the DOL’s overtime rule, it is still set to take effect on Dec. 1, 2016.

·      A bill that would delay the rule’s effective date to June 1, 2017, has not yet become law.

·      Two lawsuits challenging the rule have been filed, but no court action has been taken.

 

IMPORTANT DATES

Sept. 28, 2016

H.R. 6094 was passed. If signed into law, this bill would delay the overtime changes to June 1, 2017.

Nov. 16, 2016

A hearing is scheduled on a request for an injunction to block the rule.

Dec. 1, 2016

The DOL’s final rule for overtime pay exemptions become effective.