Department of Labor Changes Date on “Final Rule” for Salary Exemptions
December 23, 2016
We’ve been advising about the U.S. Department of Labor’s (DOL) much-anticipated proposed rule changes that revise the regulations defining the federal Fair Labor Standards Act, Section 13(a)(1) salary exemptions for supervisors and managers and apply increased salary requirements for overtime exemptions applied to those employees. Here is the latest.
The DOL initially anticipated that the “Final Rule” on salary exemptions would be launched in January 2016, but we previously reported that the agency then received more than 250,000 comments in response to the Final Rule.
As a result, the DOL updated its position and hinted that the new rules would not come into play until at least the end of 2016 or even later. However, according to a recent report, the DOL now anticipates that it will publish the revised rules in the spring of 2016, with implementation in early summer, 2016. Stakeholders speculate that an earlier date could help ensure that any Congressional challenge to the proposed rules is resolved under President Obama.
The effective date of the “Final Rule” will likely be set for 60 days after the “Final Rule” is publicized, so employers may have to comply with the new regulations by early summer, 2016. Of course, the DOL could finalize and implement the regulations even earlier than anticipated, so we continue to recommend that employers engage in the appropriate analysis of its supervisors now, to the extent possible, in order to be prepared to implement necessary changes, whenever that might be required. Stay tuned for further updates.
If you need help with your analysis, or with strategizing next steps, our labor and employment team is here to help.
Rosemary M. Marin
Chair, Labor & Employment
Board Certified, Labor and Employment Law
Texas Board of Legal Specialization
Salary exemptions and other issues related to the FLSA compliance will be among the key topics that will be covered at the ScottHulse 2016 Labor & Employment Law Seminar set for MARCH 3, 2016.
THIS INFORMATION IS PROVIDED AS A COURTESY – NOT AS LEGAL ADVICE. Please know that we are raising the above issues as a courtesy and for informational purposes only. It is not intended as a substitute for legal advice concerning a particular situation that may be affecting your business.
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