NAICU Washington Update

Final Overtime Rule Sent to OMB

March 23, 2016

Last week, the U.S. Department of Labor (DOL) sent its final rule on overtime pay to the White House Office of Management and Budget (OMB) for review and approval. There is currently no information on the content of the final rule, or when it will go into effect.

The DOL’s original proposed overtime rule, published in the Federal Register last July, would raise the salary threshold under which workers are guaranteed overtime pay to $50,440, more than double the current threshold of $23,660.

This is happening much faster than was previously announced or expected. Prior to last week, a final rule from the Department was not expected until July, at the earliest. OMB typically takes one to two months to review executive branch proposals. Last week’s action by DOL means a final rule could be published as early as April or May. Between now and then, NAICU will be filing additional comments and seeking to meet with OMB officials. Once the final rule is issued, there will still be an undetermined period of time prior to the actual implementation date.

Two factors likely influenced the rush to push the new rule through. First, the House and Senate introduced companion bills last week that would table the proposed rules until an economic impact study is conducted to determine how the rule would affect small businesses and nonprofits – including colleges and universities. Second, the short election year legislative calendar limits the time period in which President Obama can act, if he wants to veto a Congressional Resolution of Disapproval prior to the next president taking office.

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