Brace for new OT rules now, says former DOL admin
The FLSA’s new “white-collar” exemptions that are expected to drastically expand who’s entitled to overtime pay are expected to be released very soon — and a former DOL administrator has offered a sneak peak at what they’ll look like.
Tammy McCutchen was instrumental in drafting the most recent changes to the OT regs (enacted in 2004), she also participated in a number of recent “listening sessions: with DOL Secretary Thomas Perez on the current rulemaking.
And recently, she shared with SHRM Online some advice for employers regarding the upcoming FLSA changes: Start looking at employer classifications as soon as the proposed rule is released.
Why? The proposed-to-final-rule process isn’t likely to include many changes.
That means firms may not have enough time after a final rule is published to make the changes necessary to avoid getting into legal trouble, according to McCutchen.
For employers to ensure they’re in compliance, an internal audit of FLSA classifications may be necessary. And that’s a costly undertaking that needs to be planned well in advance.
Likely and unlikely changes
While employers will have to wait until the proposed rule is published to know exactly what the specific changes will be, here’s what some experts are saying.
Employment attorney and former acting WHD administrator Alfred Robinson, Jr. told SHRM Online a paper funded by the DOL recommended increasing the white-collar exemption’s salary level to $970 per week or $50,440 per year.
In addition, it’s expected the agency will consider adopting California’s requirement that an employee primarily perform exempt duties for at least 50% of his or her work time to be considered OT-exempt.
One thing industry experts believe the rule won’t include: A safe harbor for firms that want to fix violations that were made in a good-faith effort to comply. That means firms have to get classifications right the first time.
Info: A previous version of this article appeared on our sister website HR Benefits Alert.
