Executive Summary: On Tuesday, March 15th, the US Department of Labor (DOL) sent to the White House's Office of Management and Budget (OMB) its Final Rule revising the White Collar Exemption Regulations, which will likely expand overtime eligibility for millions of workers. Typically, the OMB review takes anywhere from 30 to 60 days. Therefore, the Final Rule could be published at any time in the next couple of months.
This timetable is consistent with recent comments made by DOL Solicitor of Labor M. Patricia Smith. As discussed in our February 22, 2016 alert, Solicitor Smith stated that the Final Rule could be published in or before July and would become effective at least 60 days after publication. Based upon the DOL's submission of the Final Rule to the OMB this week, it is clear that the Final Rule will be published prior to July, and likely within the next couple of months.
The specific provisions of the Final Rule will only be revealed once it clears OMB review and is published in the Federal Register. However, based upon the provisions contained within the Proposed Rule published last June (discussed in further detail here), employers should anticipate an increase in the salary basis thresholds for exemption, modification of the duties tests, and a mechanism for the potential annual updating of the salary basis thresholds.
In light of the potentially significant impact of the Rule on most companies, employers should begin taking steps now to ensure they will be in compliance with the Final Rule when it takes effect.