Just a few weeks ago, we posted our latest update on the Department of Labor’s proposed new overtime rule, which calls for a more than doubling of the salary level threshold for white collar exempt positions. At that time, we reported on the House Education and Workforce Committee’s renewed inquiry into the DOL’s outreach efforts, which some saw as an attempt by Congress to somehow delay or affect the issuance and implementation of the final rule.
Perhaps in an effort to avoid further delay, the DOL recently sent its proposed rule to the White House Office of Management and Budget for review, ahead of the expected schedule. So now, instead of an anticipated final rule date of July, it is possible that we could see a final rule in April or May. Like much of what happens in Washington these days, it is likely that the timing of the rule is politically motivated and connected to the Presidential election. Given the timing of the Congressional legislative review process, it is possible that if the regulation is issued after mid-May, there is risk of reversal, particularly if a Republican candidate is elected President.
As always, we will continue to provide updates on this important legislative initiative as we get closer to the issuance of a final rule.