Ask The Magic Eight Ball: When Will Changes To The FLSA’s White Collar Exemptions Become Effective?


By: Marty Heller

Magic eight ball, will the proposed increase in the minimum salary for the white collar exemptions become effective in June or July of this year? Concentrate, and ask again later.

Magic eight ball, will the proposed increase in the minimum salary for the white collar exemptions become effective in August or September of this year? Signs point to yes.

In all seriousness, we expect the effective date of the proposed regulations increasing the minimum salary for the white collar exemptions from $23,000 per year to more than $50,000 will be somewhere between late July and early September.

Here is our math. Last week, the Department of Labor completed its review of the proposed regulations and the comments to them, and forwarded the final rule (not yet published) to the Office of Management and Budget, the final step before the final rules are published. Typically, the Office of Management and Budget takes 30-60 days to review proposed changes to regulations. If it takes the full 60 days, and if the rule is not effective until 60 days after it is published, the rule will be effective in mid-July.

But, Congress could choose to pass a joint resolution trying to block the rule. Let’s assume for the sake of argument that this does happen, then President Obama likely vetoes the joint resolution, and Congress is given an additional 30 days to try to override the veto. Under this scenario, the effective date would be the middle of August, if there are no other delays. Of course, there may be delays, so the effective date then would fall somewhere between late-August and September.

What do we know for sure? Nothing. But we may be closer to knowing something than we were before we started writing about not knowing. Make sense? Good.



Articles

President Obama Signs Bipartisan Bill Creating Federal System Of Trade Secrets Law

Second Amendment Right to Bear Arms Includes Stun Guns

Ask The Magic Eight Ball: When Will Changes To The FLSA’s White Collar Exemptions Become Effective?

Show Me the Money! The Supreme Court Leaves Open the Possibility of Mooting Class Claim by Depositing Money to Satisfy Representative Plaintiff


Learn more about FMG

CGL and Business Liability

Commercial and Complex Litigation

Construction and Design Law

Financial Services and Securities

Insurance Coverage & Bad Faith

Government Law

Labor and Employment Law

Professional Liability / Errors and Omissions



Freeman Mathis & Gary, LLP
100 Galleria Parkway
Suite 1600
Atlanta, Georgia 30339-5948

Tel: 770.818.0000 / Fax: 770.937.9960

www.fmglaw.com


Copyright © 2016 Freeman Mathis & Gary, LLP Click here to print the article.