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May 19, 2016

Legal Update
Andrea Studley Knowles

New federal labor rule on overtime for executives and other “white collar” employees

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On May 18, 2016, the U.S. Department of Labor (“DOL”) released its highly anticipated Final Rule Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees (the “Final Rule”). The Final Rule extends overtime pay eligibility to millions of workers by raising the thresholds required to satisfy “white collar exemptions” to the overtime pay protections of the Fair Labor Standards Act (“FLSA”). The Final Rule becomes effective December 1, 2016.

Key Provisions of the Final Rule

The Final Rule is scheduled to be published in the Federal Register on May 23, 2016. A pre-publication version is available here.

Compliance Options

Employers have the flexibility to choose the method or methods of compliance that best suit their business and workforce. Options for compliance include, but are not limited to, the following:

To the extent employers have not already done so, they should evaluate their current workforce and payment structures before developing and implementing a compliance plan. The DOL has released fact sheets and guidance documents designed to help employers comply with the new regulations. These materials are available through the DOL website.

If you have any questions about the issues addressed in this law alert, please contact Christine M. Netski or Andrea Studley Knowles.

This Alert was prepared for the clients and colleagues of Sugarman, Rogers, Barshak & Cohen, P.C. It is provided for educational and informational purposes only and is not a substitute for professional advice on your specific legal situation.