According to Bloomberg BNA, the DOL’s final overtime rule, which is expected to be released May 18, 2016, will take effect December 1, 2016, not within 60 days as previously indicated. This gives employers nearly 200 days to comply with the anticipated minimum salary increase for exempt status, which is expected to more than double the current minimum of $23,660.
Bloomberg also reports that the minimum salary threshold, which was expected to be updated every year based either on the Consumer Price Index or as a fixed percentile of earnings for full-time salaried workers, will now only be adjusted every three years.
Finally, the DOL also made clear that that there will be no carve out in the new rule for higher education institutions, which had argued that they could not be expected to meet the anticipated payroll costs.
