The DOL sent the final version of its overtime rule, a revision to the Fair Labor Standards Act, to the White House Office of Management and Budget (OMB) on March 15. The OMB is expected to publish a final rule within 30-60 days.

The increased threshold was determined by the DOL based on the standard salary level at the 40th percentile of weekly earnings for full-time salaried workers.  DOL used salary data from 2013 to determine the threshold ($47,892) and adjusted to the proposed $50,440 for 2016 implementation.

According to the DOL’s website, this exemption threshold has not been updated since 2004 and is due to be revised as “President Obama directed the Secretary of Labor to update the FLSA’s overtime pay protections and to simplify the overtime rules for employers and workers alike.”

Shortly after the final proposed rule was submitted to the OMB, Republican congressmen introduced the “Protecting Workplace Advancement and Opportunity Act” in both the House and Senate. This proposed legislation is intended to prevent the DOL overtime rule from being implemented, require economic climate considerations for the rule and impose additional restrictions on future changes to overtime rules.

Whalen & Company will continue to follow the proposed rule as it progresses.

We hope this information has been helpful to you.  If you have questions about how the proposed overtime rule affects your business, please contact your Whalen & Company representative.