Last June, the U.S. Department of Labor (DOL) issued a Notice of Proposed Rulemaking (NPRM) setting forth its rationale for a new and higher salary test for employees classified as exempt from overtime under the White Collar Exemptions covering executive, administrative, and professional employees. The DOL proposed a new guaranteed salary level of $50,440 per year------- an increase of 113% over the current $23,660 salary level. (For details about this proposed change and others in the NPRM, refer to our July 2015 e-bulletin.)
Since March 2014, when President Obama issued his directive to the Secretary of Labor to "modernize the overtime rules," it has been widely anticipated that the Final Rule would be effective prior to the 2016 elections. Why? Because of the potential for a Republican President to be elected who, by all accounts, would likely direct the DOL to delay the release of the Final Rule or revoke it altogether. Proponents of the overtime changes know that the sooner the changes take effect, the harder it will be to overturn them.