By: Paul A. Wilhelm
The U.S. Department of Labor (DOL) yesterday refused requests from certain lawmakers, nonprofits and employer groups to extend its comment period on its proposed overtime rule. The comment deadline therefore is still this Friday, September 4, 2015. As you will recall, the DOL gave notice in July of its proposed rule, and invited comment over a 60-day period. Comments on the proposal are being accepted especially for the following areas:
- The DOL's plan to raise the minimum annual salary level required for "white collar" exemptions to approximately $50,440 (or about $970 per week), up from the current $23,660 ($455 per week) - an increase of 113%.
- The DOL's plan automatically to "update" (i.e., raise) the above salary level every year.
- Whether nondiscretionary bonuses should satisfy a portion of the new salary level test.
- Whether the standard duties tests for "white collar" exempt employees should be modified, including possible tighter limits upon the amount of "nonexempt work" that can be performed by an exempt employee.
If you would like to submit comments regarding the proposed overtime rule, contact us now to discuss a submission.
In addition, and even if you choose not to comment, now is the right time to audit (or re-audit) your workforce and policies for compliance with existing and proposed overtime rules, to stay ahead of the curve. Among other things, our Overtime Audit Team has Lean Six Sigma time-study expertise to help quantify duties actually performed by exempt managers, for example, to help you structure your workforce and your exemptions properly.
To connect with our Overtime Comment Team or our Overtime Audit Team, contact Paul Wilhelm at (313) 309-4269 | eat0@eau0eav0eaw0, or another member of Clark Hill's Labor and Employment Practice Group.