Late last month, the final overtime rule was passed on to the Office of Management and Budget (OMB) for its financial impact review of the proposed final rule. This review could be completed in just a few weeks as there is quite a bit of pressure from the White House Administration to see this rule enacted before President Obama leaves office.
If no changes are made to the current proposed rule, the revision to the Fair Labor Standards Act (FLSA) would impact millions of working employees moving them from the exempt classification from overtime to non-exempt. At the recent Arkansas SHRM State Conference held last week, a representative from the national SHRM mentioned that over 250,000 comments were received regarding the proposed rule and that SHRM provided their own comment letter.
At the same conference, Tammy McCutchen, an attorney with Littler in Washington, D.C. presented an educational session on the rule and how organizations can prepare in advance to meet this rule before it becomes final. She believes that the final rule will be published in May or June and take effect no later than Labor Day, September 5.
Beth Mirza, Director of Online New Operations for SHRM indicated in a recent article that the “Obama administration must work quickly to implement the rule to protect it from being overridden, if a Republican wins the White House. Under the Congressional Review Act, a joint resolution from both houses of Congress and the President can undo laws and rules passed during the final 60 legislative days of the previous Congress. The act has been invoked only once before – to revoke the ergonomics rule.” Beth also mentioned that “more employees will be considered eligible for overtime as the salary level rises. The proposed rule recommended setting the salary threshold for exempt employees at $50,440, up from the current $23,660 annually.”