January 19, 2021

Volume XI, Number 19


January 18, 2021

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White Collar Exemption Regulations Move to Final Review Stage

On Monday the U.S. Department of Labor released its final overtime exemption rule to the White House Office of Management and Budget (OMB). The OMB will now conduct its concluding review of the regulation, which, once approved, will be published in the Federal Register. The OMB has up to 90 days to complete its review, though the average time frame is approximately 60 days.

The revised regulations are expected to increase the minimum salary required for exemption as an executive, administrative, or professional employee; increase the minimum total annual compensation required for exemption as a “highly compensated employee”; and establish a mechanism for automatically updating these minimum salary and compensation levels going forward.  Once the final rule is published, employers are likely to have at least 60 days to come into compliance before the new rules become effective.

In its Fall 2015 Semiannual Regulatory Agenda, the DOL estimated a July 2016 timeline for the publication of the Final Rule.  The release of the proposed regulations to the OMB this week means the DOL is on track to possibly have the rule become official as early as this spring.

© 2020 Proskauer Rose LLP. National Law Review, Volume VI, Number 76



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.