May 18, 2016
In a highly anticipated announcement, the U.S. Department of Labor (DOL) published its Final Rule on May 18, 2016, implementing President Obama’s March 13, 2014 directive to “modernize and streamline the existing overtime regulations.” This new Rule will take effect Dec. 1, 2016 and, based on DOL estimates, will expand overtime protection to cover more than 4.2 million additional workers. The Final Rule also significantly expands overtime eligibility while recognizing some of the concerns employers brought forth during proposed rulemaking.
Details of the Final Rule will be examined in the coming days, but below is a summary of key takeaways:
The DOL has released a number of resources to accompany its announcement:
We previously reported on this issue in 2014 when President Obama directed the DOL to propose changes to the FLSA and in 2015 when the DOL issued its Notice of Proposed Final Rulemaking. We will continue to provide further updates as the Final Rule is analyzed in detail.
Until then, for additional information on the new regulations and how they will affect your business, please contact the authors, your McGuireWoods contact, or a member of the firm’s labor and employment group.