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EMPLOYER ALERT: New Overtime Rule Inches Closer to the Finish Line

At the beginning of March, the United States Department of Labor (DOL) sent a proposed Final Rule on new overtime requirements to the Office of Management and Budget (OMB) for final review before publication.  We previously covered here what this new proposed Final Rule will likely entail based on its original form.

The OMB is the administrative agency that reviews final agency regulations in a variety of ways before such regulations are officially published in the Federal Register.  The OMB typically takes anywhere from a month to a couple months to conduct its review.

Given the extensive pushback from businesses during the public comment period, we expect to see legal challenges to the Final Rule if and when it is published. However, the outcome of those challenges is, by no means, certain.

Once published, the Final Rule will take effect soon thereafter, so employers should be prepared to act quickly to ensure legal compliance with federal wage and hour laws.

For questions about this rule, contact the employment law team at Sandberg Phoenix. 

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