Client Alert
Overtime Regulations
are still on track for July 2016
According to the Employer's Guide to the Fair Labor Standards Act (Thompson, April 2016, Vol. 23, No.8) the release date for the updates to the U.S. Department of Labor's final overtime rule changes is still July 2016.

Most recently, DOL Solicitor of Labor Patricia Smith said the final FLSA White Collar Exemption regulations will be published in July of this year, with an implementation date 60 days after that. Smith made her comments during the Midwinter Meeting of the 2016 American Bar Association's Federal Labor Standards Legislation Committee. The timeline Smith outlined is consistent with that given in DOL's regulatory agenda, released in late 2015. Her comments seemed to take aim at reports predicting the final rule wouldn't be released until "late July" or later.
 
The DOL announced the proposed rules in July 2015. If implemented as proposed, the rules would increase the number of employees eligible for overtime by nearly doubling the compensation level currently required as part of the tests for whether an employee is exempt from the act's overtime requirements. Specifically, the current exemption threshold of $455 per week, or $23,660 annually, would increase to approximately $970 per week, or $50,440 annually, under the proposed changes. The proposal also would increase the threshold for highly compensated employees to $122,148 annually, and include a mechanism to automatically update the salary threshold moving forward.
 
The updated overtime regulations are widely seen as a top priority for the exiting Obama administration. Overtime regulations have not been updated in over a decade, and the last update to the white collar exemption regulations was in 2004. During that effort DOL provided 90 days for comments, and the final rule went into effect 120 days after publication. The Obama administration announced the proposed overtime regulations last July with a 60-day comment period.
 
The proposed rule received nearly 300,000 comments, DOL is currently sifting through them, although sources indicate the number of "substantive" comments is likely significantly lower than that figure suggests. In early February, more than 100 members of the U.S. House of Representatives signed a letter addressed to Secretary of Labor Thomas E. Perez.

In the letter, they expressed concerns with the proposed rules and predicted that any drastic changes to the existing rules would be harmful. They also argued that the rules were too vague regarding any possible changes to the duties test portion of the white collar rules. Since the proposed rule was published, there has been a great deal of speculation and fear that the administration will change the duty rules in the final regulations in ways that weren't indicated in the proposed version.
We at Goldman remain committed in assisting you and your business to adjust to these changes in the Law. For further information you may contact any of the attorneys in the Labor & Employment Law Department.
Attorneys - Labor & Employment Law Department
Luis F. Antonetti-Zequeira
Vicente J. Antonetti-Zequeira
Angel Berberena-Feliciano
Lorena Cortés-Rivera
José J. Fas-Quiñones
Amelia Fortuño-Ruiz
Cenia M. Mercado-Santana
Luis D. Ortiz-Abreu
Howard Pravda
Francisco M. Ramírez-Rivera
Jorge Rodríguez-Micheo
Javier G. Vázquez-Segarra
787.759.4111
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lantonetti@gaclaw.com
vantonetti@gaclaw.com
aberberena@gaclaw.com
lcortes@gaclaw.com
jose.fas@gaclaw.com
afortuno@gaclaw.com
cmercado@gaclaw.com
lortiz@gaclaw.com
hpravda@gaclaw.com
framirez@gaclaw.com
jrodriguez@gaclaw.com
jvazquez@gaclaw.com

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