The proposed rules on overtime issued by the Department of Labor (DOL) earlier this year will likely not be final until late 2016 according to Solicitor of Labor Patricia Smith, as reported by the Wall Street Journal. Employers had been expecting the rule to go into effect late 2015 or early 2016, the Journal said, but now that seems unlikely.
The proposed rules were released June 30 of this year and have received over 250,000 comments, which may explain why the agency is taking so long to finalize them. Many commentators believe that the agency will still seek to have the regulations implemented prior to a new president taking office because there is a risk that a new Republican president could undo the rule. If that’s the case, employers may have a short amount of time before the rules are finalized and when they become effective.
Employers should be getting ready now for various scenarios that may be implemented under the final rule. Although there is a possibility that the final rule might be revoked if a Republican wins the presidency next November, employers would be wise to prepare for all potential outcomes now.