Changes to Exemptions from Overtime Rules Expected in July 2016

The U.S. Department of Labor's (DOL) new overtime rule for white collar exemptions is now expected to be published around July 2016, according to the DOL's Fall 2015 Semi-Annual Regulatory Agenda. On June 30, 2015, the DOL issued its proposed overtime rule for white collar exemptions. Once the final rule is published, the compliance timeline for employers will begin.

The DOL's proposed rule almost doubled the minimum salary amount required for employees to be exempt as an executive, administrative, or professional employee. The proposed rule recommended the salary threshold for the exemption be increased from the current $455/week or $23,660/year to $970/week or $50,440/year. Further, while the DOL did not propose any changes to the "duties" test in June, it did invite comments on that topic. As such, it would not be much of a surprise if changes are made in the final rule to the "duties" test as well.

It is expected that employers will have at least 60 days to comply once the final rule is published.