Department of Labor Moves to Revise Overtime Rules

Last week, the Department of Labor (DOL) issued a new NPRM on overtime rules. You may recall that CDA has been monitoring this issue since a lawsuit overturned an Obama-era rule amending the Fair Labor Standards Act’s “white collar” overtime exemption in a way that would require many employers to pay overtime. The new rule will formally rescind the rule enacted during the Obama Administration, a step necessary to ensure that there could be no retroactive enforcement of that rule.

The new proposed rule is considerably more reasonable that the previous standards, with a threshold salary for qualifying for the “white collar exemption” of $35,308 – significantly lower than the $47,000 proposed in the rule under the previous administration. Additionally, the new proposed rule does not include automatic increases in that salary threshold as the 2015 rule did.

We will review the rule and will solicit member feedback should comments be warranted. Review the new NPRM.