Release of Final Overtime Rules Imminent

Based upon information received from a number of sources, it now appears that the Department of Labor's controversial changes to the rules governing the white collar exemptions under the Fair Labor Standards Act will be finalized and published in the coming weeks - potentially as early as next week. Once published, it is expected that employers will have only 60 days before the new rules take effect.

The DOL initially released its proposed changes to the FLSA's regulations in July 2015. The proposed rules contained a number of controversial changes, including an increase in the minimum salary threshold for the white collar exemptions from an annualized level of $23,660 to $50,440, as well as automatic, annual updates (increases) to the minimum threshold. In recent days, Politico reported that the DOL plans to slightly lower the new threshold to $47,000. Regardless of the final number, it is clear that the final rules will impact millions of traditionally exempt positions.

Employers that have not done so already should immediately consider how these changes will impact their workplaces and what steps will be necessary to ensure compliance.