Overtime Exemption Regulation Submitted for Review

We have learned that the long-awaited proposed regulation regarding overtime pay exemptions (the “White Collar Exemption Regulation”) has been submitted by the Department of Labor to the Office of Management and Budget (OMB) for review.  Although there is no deadline for this initial review, the start of the oversight process indicates that the proposed regulation will be published for notice and comment in the near future.

The publication of the proposed regulation is only the beginning of the process.  Once published, the public—including, particularly, affected employers—will have an opportunity to comment on the proposal during a required “notice and comment” period.  This period is often 90 days, but for regulations with significant economic impact, the comment period may be longer and can be extended.  This is an important step, and is the process for ensuring that employer’s views are considered by DOL as part of the rulemaking process.

In 2016, the Obama Administration published an overtime regulation that would have altered long-standing exemptions and raised the overtime pay threshold from $23,660 annually to $47,476.  Many positions once considered executive, administrative or professional would, thus, be subject to overtime pay.  Further, the pay threshold would be indexed to wage growth and updated once every three years.  This regulation was challenged and enjoined by the courts.  A new overtime rule has been promised by the Trump Administration.

FortneyScott will closely monitor this development and keep you informed.  Additionally, we will be filing comments on behalf of clients after the proposed regulations are published.

For more information please contact your FortneyScott attorney or email us at info@fortneyscott.com.