Support through your toughest HR challenges: A network of 285,000 HR professionals.
Shawn Premer shows how doing the right thing for employees leads to positive business results.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
DOL sends proposed changes to OMB for review
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
The final overtime rule is edging closer to release: yesterday, the Department of Labor (DOL) sent to the Office of Management and Budget (OMB) its final changes for determining which workers are eligible for overtime pay. The revision to Fair Labor Standards Act regulations is expected to affect millions of employees currently considered exempt from overtime, requiring them to be reclassifed as nonexempt.
After a review period—which could take as long as several months or as short as a few weeks—the final rule will be published in the Federal Register and take effect within 60 days of publication.
The proposed rule was published on July 6, 2015, and received more than 250,000 comments (the Society for Human Resource Management submitted a comment letter last September). Differences between the proposed and final rule won't be made public until the final rule is issued.
At the SHRM Employment Law & Legislative Conference yesterday, Tammy McCutchen, an attorney with Littler in Washington, D.C., and a former administrator of the DOL’s Wage and Hour Division, advised attendees to keep an eye on reginfo.gov, which tracks government agencies’ regulatory actions as they are submitted for review to OMB. Sure enough, the rule appeared on the site late March 14.
At the conference, McCutchen told attendees she believed the rule would work its way quickly through OMB and most likely be published by July 7, and take effect on Labor Day, Sept. 5. Alternatively, she said, the rule would be published the Friday before Labor Day, Sept. 2, to take effect Nov. 1—just prior to Election Day.
The Obama administration must work quickly to implement the rule to protect it from being overridden, if a Republican wins the White House. Under the Congressional Review Act, a joint resolution from both houses of Congress and the President can undo laws and rules passed during the final 60 legislative days of the previous Congress. The act has been invoked only once before—to revoke the ergonomics rule.
McCutchen urged attendees to prepare now for the rule’s implementation. More employees will be considered eligible for overtime as the salary level rises. The proposed rule recommended setting the salary threshold for exempt employees at $50,440, up from the current $23,660 annually.
Beth Mirza is director of online news operations for SHRM.
Related SHRM Articles:
Proposed Overtime Rule Threatens Nonprofits’ Survival,SHRM Online Legal Issues, February 2016
DOL’s Final Overtime Rule Expected in Latter Half of 2016, SHRM Online Compensation, November 2015
Late Release of Overtime Rule Could Mean Short Implementation Period, SHRM Online Legal Issues, November 2015
SHRM's Comment Letter to the Department of Labor, SHRM Government Affairs, September 2015
Proposed Overtime Rule Puts Focus on Compliance, SHRM Online, June 2015
Latest News: Fair Labor Standards Act Overtime Regulations, SHRM Policy Action Center
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Apply by March 23
SHRM’s HR Vendor Directory contains over 3,200 companies