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DOL Overtime Exemption Rule in Final Review Stage

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DOL Overtime Exemption Rule in Final Review Stage

Tuesday, March 15, 2016

On March 14, the Department of Labor (DOL) final rule that will change the salary threshold under which employees must be paid minimum wage and overtime was sent to the Office of Management and Budget (OMB) for review, which is the last step before a final rule is published. Known as the "overtime exemption rule" or the "white collar threshold rule", this rule will have a significant impact on all industries, including the provision of disbaility services. (For more background on the rule, see WICs article, "DOL Releases Overtime Exemption Proposed Rule," June 30, 2015.)

Although the regulation was officially predicted last fall to be finalized in July 2016, sending it to OMB begins the clock ticking on its review. OMB has up to 90 days to review the rule, but does not have to take that much time. If OMB takes the full 90 days, that puts the new latest date of finalization at June 12, 2016. If OMB takes only 60 days to review it, it could be finalized prior to May 16, which is the date that would shield it from Congressional review under a different administration under the Congressional Review Act (CRA). The CRA is a law that permits Congress to perform an expedited review of new federal regulations and overrule them. Such an overrule would be subject to a presidential veto, which gives additional motivation to the current administration to quickly finalize any rules it wishes to implement prior to the new term of an administration starting, to shield any key regulations from the possibility of a Congressional override. 

Earlier this week, ANCOR sent out an action alert connected to our national Save Our Services (S.O.S.) Campaign: Funding the Future of Disability Services encouraging members to reach out to their members of Congress NOW to ask them to act prior to the rule taking effect. We believe that the rule with become effective within 60 days of finalization, which is why it is critical to take action quickly. We are also planning a fly-in event in April, and will be reaching out to members to participate.