On Friday, the Department of Labor (DOL) issued its semi-annual regulatory agenda, which provides updates on the agency’s rulemaking efforts including OSHA rule changes and rules impacting federal contractors and subcontractors. The most notable items in the agenda, though, are new deadlines for the DOL’s final rule revising the FLSA’s “white collar” overtime exemptions for executive, administrative, and professional employees, and a new release date for the controversial “persuader” rule.
In a surprising move, Patricia Smith, the Solicitor of Labor for the Department of Labor (DOL), recently announced that the DOL’s contentious overtime regulations may not be released until late 2016. The DOL received approximately 270,000 comments relating to the regulations which may, in part, be reason for the delay. The proposed regulations, issued in July of this year, are the cause of significant concern for many employers and for good reason. As it currently stands, when the regulations go into effect the minimum salary basis for exempt employees under the traditional “white collar” exemptions (executive, administrative, and professional employees) is set to more than double from the current $455 per week ($23,660 per year) to $970 ($50,440 per year). In addition, the salary basis threshold will automatically increase every year thereafter to keep pace with inflation. Prior to the DOL’s recent announcement to extend the effective date, final regulations were expected to be implemented in early 2016.
President Obama’s recent approval of the federal budget on November 2, 2015 enacted a provision that will increase Occupational Safety and Health Administration (OSHA) civil penalties by as much as 75-80% over current amounts starting next year. This has the potential to significantly impact some employers, especially those in construction and manufacturing.
