Will the DOL Overtime Rule Survive the Pushback?

Over the past six months, we have been keeping you abreast of changes and updates regarding the impending DOL overtime rule change. Set to go into effect December 1st, businesses have been tasked with making major payroll adjustments that will be required for compliance.

What's the latest?

In the 11th hour, in response to 21 states and more than 50 businesses each having filed lawsuits against the DOL, the U.S. House of Representatives has passed a bill delaying the rule till June of 2017. A host of bills flooded in just before congress adjourned in late September – including one proposing a phase-in of the DOL rule over a period of four years.

What's the takeaway?

The Office of Management and Budget has already issued a response to the bill, saying that should it reach his desk, President Obama will veto it. Christopher J. Moran and Lee E. Tankle, lawyers at Pepper Hamilton LLC, told Lexology, "While we will continue to monitor these lawsuits, we are not optimistic that they will ultimately be successful."

Consensus is that businesses should proceed with a plan for the December 1st effective date. If you haven't taken advantage of the long lead time to get ready for these changes, it is definitely crunch time. Start with a Free Trial of Timesheet Mobile. Accurately tracking employee hours — including overtime — is the most efficient and cost-effective solution. We make it easy for business owners and managers to set overtime rule thresholds, allowing enough cushion to make on the spot schedule adjustments to minimize or avoid overtime. Stay the course and take action while there is still time.

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