Overtime Rule Sent to White House Office of Management and Budget; Overtime Legislation Introduced in Congress

Posted on: March 21st, 2016 by NADO Admin

Last week, the U.S. Department of Labor’s (DOL) sent its proposed rule (published in July 2015) on changes to the salary threshold for overtime exempt workers to the White House Office of Management and Budget’s (OMB) Office of Information and Regulatory Affairs (OIRA) for review.  OIRA reviews agency draft and proposed final regulatory actions before final regulations are issued.  The final rule could be published as early as 30 days from now, though it is likely to take longer.  Under current regulations – last updated in 2014 – employers are required to pay all eligible employees time-and-a-half for any hours they work in excess of 40 hours per week if they make less than $23,660 per year.  The proposed rule would increase that salary threshold to $50,440 per year.  Hourly workers would generally continue to receive overtime pay as they do under current rules.  Click here to view the comments NADO submitted on the proposed rule.

On the legislative side, the Protecting Workplace Advancement and Opportunity Act (H.R. 4773 and S. 2707) was introduced last week in the House and Senate.  This legislation would prevent the current proposed rule from taking affect and require DOL to conduct a comprehensive economic analysis on the impact of mandatory overtime expansion to small businesses, nonprofits, and public employers before issuing a new proposed rule.

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