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New DOL Overtime Rule Expected to Take Effect December 1, 2016

According to Bloomberg BNA, the DOL’s final overtime rule, which is expected to be released tomorrow, will take effect December 1, 2016, not within 60 days as previously indicated.  This gives employers nearly 200 days to comply with the anticipated minimum salary increase for exempt status, which is expected to more than double the current minimum of $23,660. 

Bloomberg also reports that the minimum salary threshold, which was expected to be updated every year based either on the Consumer Price Index or as a fixed percentile of earnings for full-time salaried workers, will now only be adjusted every three years. 

Finally, the DOL also made clear that that there will be no carve out in the new rule for higher education institutions, which had argued that they could not be expected to meet the anticipated payroll costs. 

© 2020 Proskauer Rose LLP. National Law Review, Volume VI, Number 138


About this Author

Allan Bloom, Litigation Attorney, Proskauer Rose Law Firm

Allan Bloom is an experienced trial lawyer who represents management in a broad range of employment and labor law matters. He has successfully defended a number of the world’s leading financial services, investment management, technology, consumer products, telecommunications, publishing, insurance, construction, and lodging companies, as well as global law firms and cultural institutions, against claims for unpaid wages, employment discrimination, breach of contract, and wrongful discharge, both at the trial and appellate court levels.

Carolyn M Dellatore, Labor Employment Attorney, Proskauer Rose law firm

Carolyn M. Dellatore is an Associate in the Labor & Employment Law Department and a member of the Employment Law Counseling & Training Group, resident in the Newark office. Her practice focuses on the representation and counseling of employers in all areas of employment and labor relations.