Sweeping DOL Overtime Exemption Changes are Coming Sooner Than Anticipated

      Yesterday, the U. S. Department of Labor delivered to the White House's Office of Management and Budget (OMB) its final rule on the minimum salary level for exempt status from the FLSA's overtime pay requirement. The DOL sparked national controversy last summer when it issued its proposed new rule to more than double the minimum salary to qualify for the FLSA's white collar overtime exemptions.  It has been estimated that by raising the minimum salary from $23,660, to an estimated annual salary of $50,440, between 5 and 6 million American workers could be reclassified from exempt, to nonexempt status.  Review by the OMB is the final step before the final rule is made official.  Typically, this takes no more than one or two months and some are saying the White House will act even sooner. As a result, previous predictions by business groups and advisors stating that the DOL's final rule would issue in July, may be off by several months.  With the final rule now coming as early as April, 2016, any employer with employees who may be reclassified from exempt to nonexempt (and thus entitled to overtime pay) must prepare immediately for these sweeping changes, if they have not already done so.

To assess what impact the DOL's new overtime regulations could soon have on your organization and/or to develop strategies and solutions to mitigate their impact to your bottom line, contact our Wessels Sherman Wage and Hour litigation team members:

Chicago, IL: Sean Darke at (312) 629-9300 or sedarke@wesselssherman.com

Minneapolis, MN: James Sherman at (952) 746-1700 or jasherman@wesselssherman.com

St. Charles, IL:  Jennifer Murphy at (630) 377-1554 or jemurphy@wesselssherman.com

Davenport, IL:  Joseph Laverty at (563) 333-9102 or jolaverty@wesselssherman.com

Milwaukee, WI: Alan Seneczko at (262) 560-9696 or alseneczko@wesselssherman.com

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