Business groups are meeting with Labor Department officials this week and through part of next week to discuss the administration’s upcoming revision of overtime rules. The meetings suggest the announcement of the long-awaited rule change is imminent.
“There is much chatter about when the proposed overtime reg is going to be released. The consensus seems to favor second half of next week,” said a business industry source who requested anonymity. A different industry source predicted Friday.
Under the Fair Labor Standards Act, employers must pay overtime to employees who work more than 40 hours a week. But workers can be exempted from that requirement if their responsibilities are deemed “managerial” in nature — also known as the “white-collar” exemption. One of the main requirements for the exemption is the workers must earn more than $23,000 annually.
Critics, including President Obama, have argued the standard is far too low and is often abused by employers. Last year, he signed an executive order requiring the Labor Department to revisit the rule. Because it is a reinterpretation of an existing law, the change does not need congressional approval.
The department is expected to raise the white-collar exemption to between $41,000 to $51,000 annually. The Huffington Post reported in January based on a leak to liberal think tank that the White House was considering $41,000, which business groups favor. Liberal advocacy groups have called for it to be at least $51,000.
The announcement has been expect since May 5, when the Labor Department sent the proposed rule revision to the White House’s Office of Management and Budget for final approval.
