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New overtime regulations headed to OIRA review

Proposed overtime rules from the U.S. Department of Labor have reportedly been sent for review to the Office of Information and Regulatory Affairs. The labor department designed the rules to replace the regulations that were meant to take effect on December 1, 2016, but were instead declared invalid by a federal district court in Texas.

The OIRA will determine if the proposed regulations comply with Executive Order 12866. This order tasks the agency with the consideration of alternatives, incorporation of public comments and measurement of costs and benefits. The review process does not require a minimum amount of time although the agency could spend 90 days or more on the assessment. A previous announcement from the Wage and Hour Division at the DOL scheduled a notice of proposed rulemaking for March 2019.

Statements from the labor secretary indicate that the white-collar exemptions for overtime will be set for salaries just above $30,000. This exemption represents a significant reduction from the regulations struck down by the federal court. The original overtime rules from 2016 had lifted the overtime exemption for white-collar workers from $23,660 to $47,476.

At times, employers try to avoid payment of overtime wages even when the law requires them to do so. For this reason, overtime hours are a common source of disputes between employees and employers. A person who has not been paid in accordance with the law could reach out for legal support. A case evaluation by an attorney might answer a person's questions about employee misclassification or wage theft. An attorney may file a complaint with labor regulators and seek a settlement from an employer.

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

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