Back in July 2015, we told you about the proposed new Department of Labor regulations which would dramatically affect employee eligibility for overtime under the Fair Labor Standards Act. After reviewing more than 250,000 comments on the proposed regulations, the DOL has now sent its changes to the Office of Management and Budget, which is expected to complete its review process fairly quickly. Experts in the area anticipate that the final regulations may be issued in early July – possibly even sooner. Once issued, the new regulations would take effect in 60 days.
Although a bill was recently introduced in Congress seeking to nullify the regulations, at this point, the bill does not seem likely to pass both houses (or to survive a presidential veto, even if it were to pass). And while there has been some speculation about how long the new regulations might survive following November’s elections, employers cannot just ignore them in hopes of their eventual repeal. Nor can employers wait for the final regulations to be issued before starting to take action. Although it’s not possible to complete the compliance process before the final regulations are issued – since some elements of the proposed regulations may be changed in the final version – employers who wait until the final regulations are issued to begin the process are likely to find themselves struggling to do all that needs to be done in just 60 days. Accordingly, while the regulatory process is wrapping up, employers who have not already done so should: