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Update - Proposed New Overtime Rule - The Wait is Almost Over

The Garden Center Group Clients:

On Tuesday, March 15, the Department of Labor (DOL) took the final step in the rulemaking process by advancing the Notice of Proposed Rulemaking (NPRM)  (commonly referred to as the "Overtime Rule") to the Office of Management and Budget (OMB) for review of the final changes.

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Overtime Rule Delayed

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.

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Paid Sick Leave: Coming Soon to a City Near You!

Although the Bureau of Labor Statistics reports that 65 percent of all workers currently receive paid sick leave benefits, across the nation there have been a proliferation of ordinances and laws that require private employers, including small businesses, to provide paid sick leave to employees.

Advocates cite statistics related to increased productivity, reduced turnover, lower rates of occupational injuries, and other workplace and societal benefits that they believe create an urgent need for paid sick leave. In addition, based on statistics showing an increase in domestic violence, supporters of these laws are proposing to include paid "safe days" for employees in need of time off to address domestic or sexual violence matters.

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