Proposed White-Collar Exemption Revisions Advance to OMB Review

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The Department of Labor has submitted its proposed white-collar exemption rule to the Office of Management and Budget for review. 

The DOL has reviewed and made proposed revisions to the FLSA regulations that govern overtime pay eligibility at the direction of President Obama. In March 2014, the president issued a memo directing the Secretary of Labor to take action to strengthen federal overtime protections-in a manner that presumably will expand the workforce segments entitled to overtime wages. The White House cited the erosion of overtime protections as an impetus for the directive.

In support of the move, a fact sheet noted the DOL's authority to define through regulation exceptions to the minimum wage and overtime rules set by the FLSA. Both the fact sheet and the memorandum pointed specifically to the commonly used "executive, administrative and professional" employees, the so-called "white collar" exemption.

The revisions to the regulation are unknown at this time and will not be publicly available until the OMB completes its review and the DOL releases the proposed regulation for public comment. While there is no minimum time period, the OMB's Office of Information and Regulatory Affairs may take up to 90 days to review a proposed regulation, with a one-time extension of not more than 30 days. (SESCO Week in Review) 

 


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