When Will the Proposed Exemption Changes Be Final?

Employers remain in suspense waiting for the proposed regulations to the exemptions under the federal Fair Labor Standards Act (FLSA) to be made final. As we have reported, these changes would more than double the salary level required for employees to be exempt from overtime, raising it from $23,660 per year to a projected $50,440 per year.

The U.S. Department of Labor (DOL) published the proposed regulations on July 6, 2015, and the comment period ended on September 4, 2015. Since then, it has been a waiting game.

Some speculate that the regulations could become final as early as the first quarter of 2016, while others predict the regulations will not be made final until next summer. According to the Wall Street Journal, the Solicitor of Labor recently indicated that the final rule likely will not be published before late 2016. Only the DOL knows for sure.

MSEC can prepare you for these changes whenever they occur. Contact your MSEC staff representative for assistance with analyzing who in your workforce will be affected and to discuss your options going forward. These options include strategies should you need to convert some employees from exempt to nonexempt status. Although the proposed regulations only affect the salary level required for exempt employees, now may be a good time to review whether your employees perform the required duties to be exempt. And, it also could be a time to create or update your job descriptions to make sure they accurately reflect the job, as they are typically the first items reviewed to determine exempt status.