Overtime Rules to be Unveiled

May 19, 2015


AA017956After a wait of well over a year, the U.S. Department of Labor (DOL) may soon be ready to propose new overtime rules. In his 2014 State of the Union address, President Obama announced that he would ask the Department of Labor to review overtime standards. Now under review at the Office of Management and Budget (OMB), those new rules are expected to propose further restricting the ability of employers to exempt “white collar” workers from overtime rules.

The DOL proposal is expected in June—it could come any time—and it could more than double the salary level required for employees to be considered exempt. The proposal is also expected to change the “primary duty” test, thereby making it more difficult to qualify an employee as exempt when they perform both exempt and non-exempt duties. This change could be particularly problematic for smaller employers where all employees—including the owner—regularly perform a range of duties.

When the proposed rule is finally issued, there will be a period for public comment before a final rule is announced. NSBA expects to be actively engaged in this process to create an ultimate rule that will be workable for small businesses and their employees.