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Revise overtime rule moving to OIRA

A new rule written by the Department of Labor is moving through the review process and may soon take effect, potentially impacting huge numbers of workers in New York and across the country. The rule will be reviewed by the Office of Information and Regulatory Affairs, which is tasked with ensuring rules comply with agency requirements. The OIRA review process can take as many as 90 days without extension. That period may also be extended and there is no minimum period of OIRA review.

The rule will impact overtime payments. The DOL issued the initial rule in May 2016. It increased the salary amount required for the white collar overtime exemption to $47,476 from $23,660. It also increased the salary amount required for the highly compensated employee exemption to $134,004 from $100,000. The rule would also establish a schedule for the automatic increase of those amounts going forward. It was planned that the rule would take effect in December 2016, but a federal court held the rule invalid and enjoined its enforcement nationwide.

Initially, the DOL appealed the federal court decision. It later withdrew the appeals and said it would revise and reissue the rule. The new proposed minimum salary for the white collar exemption is likely to be in low $30,000s, based on statements made by the Secretary of Labor. This represents a significant decrease from the amount proposed during the Obama administration.

Employees who have questions about the application of new overtime rules or other employment regulations might want to schedule a meeting with an attorney. An attorney might be able to help employees pursue payment for amounts they are owed based on federal or state law. An attorney might be able to draft and file a complaint seeking payment for overtime claims and then argue on behalf of the client in court.

Source: National Law Review, "New Overtime Rule Soon to Make Its Appearance", Jeffrey W. Brecher, Jan. 14, 2019

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