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FLSA Overtime Rule: Six Month Reprieve? U.S. House Votes Yes

On Wednesday, September 28, 2016, the U.S. House of Representatives passed the Regulatory Relief for Small Businesses, Schools, and Nonprofits Act, by a vote of 246 to 177.  The Act would delay implementation of the Department of Labor’s Final Rule modernizing the Fair Labor Standards Act’s white‑collar exemptions from December 1, 2016 to June 1, 2017.  As we have previously reported, the Final Rule, which is set to go into effect on December 1, 2016, raises the salary threshold for workers to qualify as exempt from overtime from $455 per week to $913 per week, and will result in many workers either getting a raise or being entitled to overtime pay.

The Act passed by the House would allow employers six more months to prepare to comply with the new overtime rule.  Employers should already be in the process of ensuring their compliance with the new overtime rules, and should not delay preparation.  The Obama administration has already threatened to veto the House bill, which it notes already provided six months for employers to prepare, and that any further delay in implementation would result in a delay in protections to workers, who cannot afford to wait.  Employers would be wise to continue to prepare for a December 1, 2016 implementation, however, given that the Bill still has to pass the Senate and given the presidential veto threat.

© Copyright 2020 Squire Patton Boggs (US) LLPNational Law Review, Volume VI, Number 273


About this Author

Shennan Harris Employment Attorney Squire Patton Boggs Columbus, OH

Shennan Harris helps employers solve – and prevent – problems through efficient, effective, personalized representation and counseling.

Shennan excels at efficiently and effectively managing all aspects of the litigation process and thinking outside the box to resolve tough problems. She represents clients in all aspects of complex litigation and arbitration, including class actions and in state and federal trial and appellate courts, as well as helps employers resolve charges of discrimination and other disputes before administrative agencies...