DOL Releases Dreaded Overtime Rule Update… Almost as Bad as Expected

On May 18th the U.S. Department of Labor (DOL) published its final rule which more than doubles the salary an employee must be paid before being considered exempt from overtime under the “white-collar” exemptions. The previous salary threshold was $455 per week, $23,660 annually. As of December 1, 2016, the new threshold will be $913 per week, $47,476 annually. It is projected that this will affect at least 134,000 workers in Ohio and more than 4.2 million workers nationally. Further, the new rule provides for automatic increases every three years. The chart below shows the current regulations, the regulations that were in the notice of proposed rulemaking (NPRM), and what is in the final rule.


The Fair Labor Standards Act (FLSA) requires businesses to pay employees time-and-a-half for hours worked in excess of 40 in a workweek unless certain exemptions apply. This rule change affects the administrative, executive, and professional exemptions, also known as the “white-collar” exemptions. Under these white-collar exemptions, if an employee performs certain duties and is paid in excess of the minimum threshold, the employee is exempt from overtime. With this significant increase in the minimum threshold, employers will be left with the tough choice of bumping employees above the threshold or reclassifying their employees to non-exempt status. The latter many times also means a reclassification from salary to hourly in order to properly track hours and know when overtime is due.


Now that the rules have been released, there are a few, albeit unlikely, ways to stop implementation. First, there are two federal bills titled the “Protecting Workplace Advancement and Opportunity Act” (S. 2707 / H.R. 4773) that have been introduced in both chambers of Congress. This legislation would prevent the DOL’s proposed overtime regulation from taking effect and details the circumstances for proposing a new overtime rule. The only other hope is to see whether the rule will be challenged in court or by Congress under the Congressional Review Act (under which Congress can disapprove the rule, but the disapproval can be vetoed by the president), and whether any such challenge will be successful. In any event, employers should start evaluating their operations to be prepared by the December 1st deadline.

For additional information on this topic, please see the articles below:

DOL Site on Final Rule
Overview & Summary of Final Rule
Q & A on Final Rule
DOL Fact Sheet on Final Rule
DOL Fact Sheet for Non-Profits
DOL Business Guidance for Private Employers


7 thoughts on “DOL Releases Dreaded Overtime Rule Update… Almost as Bad as Expected

  1. I am just commenting to let you know of the perfect experience my wife’s princess encountered studying your web site. She picked up numerous details, most notably what it’s like to have an ideal helping character to have many more very easily gain knowledge of selected advanced subject matter. You undoubtedly exceeded our own expectations. Thanks for offering such effective, healthy, explanatory and in addition fun thoughts on this topic to Gloria.

  2. Its like you read my mind! You appear to know so much about this, like you wrote the book in it or something. I think that you can do with some pics to drive the message home a bit, but instead of that, this is wonderful blog. A fantastic read. I’ll certainly be back.

  3. All the best with the fine related information right here on the web, it is a great small to medium sized test your net visitors. What person reported by below coverage? . . . .Fall in love with typically is unhurried, really like is almost certainly option. It not be jealous of, but there’s more talk, is not incredibly. It’s not necessarily irritating, itrrrs not self-seeking, it really isn’t successfully angered, it also blocks completely no list linked errors. Are fond of doesn’t necessarily relish hateful yet , rejoices when using the reason. This kind of be sure you satisfies, you should definitely trusts, be certain to hope, routinely perseveres.

Leave a Reply

Your email address will not be published. Required fields are marked *