Delay in Overtime Pay Rule Release

On July 6, 2015, the Department of Labor released its proposal to update overtime pay rules. Currently, in order to be considered exempt from overtime pay, employees must meet certain minimum tests related to their primary job duties and be paid on a salary basis not less than $23,660 annually. The proposal rule raises the threshold to $47,892 annual. The threshold amount will be adjusted annually. By the time the proposal is enacted, the threshold will be closer to $50,000.

At a recent panel discussion, Solicitor of Labor Patricia Smith said that the Department’s final rule is not likely to appear before late 2016. Ms. Smith said that the lengthy time needed to finish drafting the regulation was due to the volume of comments, about 270,000, and the complex nature of the change.


NWCG does not provide HR compliance assistance, and this alert is being provided as a courtesy. Questions should be directed to the credit union’s own CPA.


When enacted, the credit union should ensure that its exempt employees are earning at or above the minimum threshold. Employees under this threshold will not be able to be classified as exempt from overtime pay. They will either need to be classified as non-exempt and subject to overtime pay, or their salary would need to be increased to the minimum level.


Proposal: https://www.federalregister.gov/articles/2015/07/06/2015-15464/defining-and-delimiting-the-exemptions-for-executive-administrative-professional-outside-sales-and#h-149

DOL FAQ: http://www.dol.gov/whd/overtime/NPRM2015/faq.htm#s4

DOL Fact Sheet: http://www.dol.gov/whd/overtime/NPRM2015/factsheet.htm

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