FLORIDA – September 30, 2016 – On September 28, 2016, the U. S. House of Representatives, by a bipartisan vote of 246 to 177, voted to delay the implementation of the Department of Labor's (DOL) Final Rule, that was published in May of this year. As you may recall, the DOL’s Final Rule updated the overtime regulations for what are commonly referred to as the “White Collar” exemptions. The primary change the Final Rule makes to the overtime regulations is the increase of the annual salary threshold from $23,660 to $47,760 (more than double the prior threshold). The Final Rule (and therefore the changes to the overtime regulations) is currently scheduled to become effective on December 1, 2016.
The Bill that was passed by the House delays the implementation of the Final Rule (and therefore the changes to the overtime regulations) by six months, until June 1, 2017. While the Bill is titled: “The Regulatory Relief for Small Business, Schools and Non-Profits Act,” the language of the Bill appears to apply to all businesses, not just small businesses, schools, and non-profits. Prior to becoming law, the Bill still needs to be passed by the Senate. If that occurs, the Bill will most likely face a Presidential veto.
In addition to the passage of the Bill by the House, two lawsuits have recently been filed in Federal Court in Texas challenging the DOL’s Final Rule.
GrayRobinson will continue to monitor status of the Bill and the two lawsuits.