U.S. House Votes to Delay Overtime Ruling

On September 28, 2016, the U.S. House of Representatives voted to delay by an additional six (6) months the U.S. Department of Labor’s rule raising the threshold for exemption to overtime pay. The rule, which is currently set to take effect on December 1. 2016, would raise the minimum salary threshold required to qualify for the Fair Labor Standards Act’s white collar exemption to $47,476 per year, more than double the current threshold of $23,660.

Although the Bill passed by a vote of 246-to-177, it must also pass the Senate in order to take effect. Because it is possible that the Bill will not reach the Senate for a vote prior to December 1, 2016, and although numerous lawsuits have been filed challenging the Department of Labor’s authority to make such modifications to the law in the first place, employers should still take actions to prepare accordingly. Thus, employers should continue to plan to make changes, if necessary, in the event the Bill does not become law prior to the December 1, 2016, deadline. We will continue to follow this issue and provide updates as new developments occur.

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