By Brad E. Bennett*
Have you prepared to comply with the Department of Labor’s (“DOL”) proposed rule amendment to the Fair Labor Standards Act’s "white collar" exemption tests for executive, administrative, and professional employees? You know, the proposed rule that will increase the salary basis test from $455 per week to $970 per week ($50,440 annually) beginning in 2016? As Z&R previously explained, the proposed rule will cause many employees that are currently exempt to lose their exemption and will dramatically increase the number of U.S. workers who are eligible for overtime pay.
Many have anticipated that the DOL would implement its pending final rule by the end of this year or in early 2016. According to a recent Wall Street Journal article, however, the rule will not appear until the end of 2016. Why the delay? Solicitor of Labor Patricia Smith recently stated that the DOL needed more time to draft the final regulations due to the sheer volume of comments it received during the comment period. The DOL received 270,000 comments from individuals and organizations during the comment period – more than three times what it anticipated.
While this is certainly good news for employers, employers should utilize this period to ensure compliance with existing employee classifications and plan for the implementation of the proposed FLSA rule amendment.
Brad E. Bennett, an OSBA Certified Specialist in Labor and Employment Law, practices at the firm’s Columbus office. He is well versed in all areas of labor and employment law including FLSA compliance. If you have questions about the DOL’s proposed regulations, please contact: Brad E. Bennett | beb@zrlaw.com | 614.224.4411
