FLSA Overtime Rule Will Resurrect in 2019

Publication
Wage & Hour

2016 seems like a distant memory for employers scrambling to comply with an updated salary level for exemption status. There were delays, injunctions, appeals, and finally the rule went away. Sort of. The Department of Labor remained vigilant in its intent to relook at the issue and propose something else.

Well, that time might actually be here. Recently, the DOL gathered interested parties for a series of listening sessions to gather more opinions before issuing a proposed rule. In addition, the DOL issued its Fall 2018 regulatory agenda that included not only updating the salary level for exemption status, but also joint employment and regular rate of pay requirements. So it appears there may be some movement in these areas in the next few months.

As for the overtime rule, a proposal isn’t expected until March 2019 and will require a comment period. The DOL will need time to review those comments (the last time, there were more than 260,000 comments) before any new rule is issued.

Key Takeaway
Employers may finally be getting some long-awaited clarification on the FLSA overtime rule in the near future. However, changes won’t be quick. It is expected the rule would not take effect until at least 2020. And there is much speculation that the proposed salary level will be far less than the 2016 version of $47,476 annually—more likely in the low $30,000 range.

MRA continues to monitor any updates to the FLSA exemption rules and will provide updates as they become available so you can be best prepared for any changes to come.

Source: Lynell Meeth, Director, Member Content, MRA – The Management Association; DOL.gov