Labor Department Proposes Wider Overtime Rule

Joel Rice’s article “Labor Department Proposes Wider Overtime Rule” was featured in the Chicago Daily Law Bulletin on July 16, 2015.

On June 30, the U.S. Labor Department issued a proposed rule that would greatly expand the number of workers who are eligible for overtime. The announcement represents the first potential change to regulations in this area since 2004.

The proposal is an outgrowth of a memorandum President Barack Obama issued in March 2014 directing the secretary of labor to “modernize and streamline” the regulations pertaining to exemptions from overtime for white-collar employees covered by the executive, administrative and professional exemptions.

In the article, Joel discusses regulations listed in the proposed rule and how these changes will affect employers moving forward.

Joel states that the proposed rule does not require any immediate changes by employers. After the proposal is published in the Federal Register, there will be a 60-day period for public comment. Afterward, the Labor Department may further alter or tweak its proposal, presumably incorporating such input. Most observers anticipate that a final rule will not be issued until later this year or early 2016.

Although nothing is set in stone yet, Joel advises employers to seek legal counsel now for assistance in how to prepare themselves for the coming changes to the white-collar exemptions.

To read the full article, please visit Chicago Daily Law Bulletin.