Are You Ready For December 1? DOL's New Overtime Rules Go Into Effect Soon

Volume 15, Issue 22
October 5, 2016

In May the Department of Labor (DOL) published its revisions to the federal overtime regulations that govern certain executive, administrative, professional, outside sales, and computer employees. These revisions become effective on December 1, 2016.

As you may remember, the minimum salary necessary to qualify for the white-collar and highly compensated overtime exemptions has substantially increased. As a result, many employers likely have employees presently classified as exempt who, on December 1, are no longer exempt from overtime. Changing these employees' classifications and/or otherwise coming into compliance with the revised regulations can be a complicated process that requires forethought and preparation.

We encourage all Nevada employers to carefully consider this issue now as it is not likely that the rules' effective date will be postponed. While the U.S. House of Representatives passed a bill in late September to delay the effective date of the DOL's new rules, there is no time frame established for the Senate to consider this bill. Even if the Senate were to pass the bill, the White House has issued a Statement of Administrative Policy that declares President Obama's intention to veto it. Moreover, it is too early to determine whether a Texas lawsuit filed against the DOL will be effective in impacting the rules.

We are prepared to assist you with this important issue.

KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.