New FLSA Overtime Calculation Implementation Could be Delayed

Recently passed legislation could delay the implementation of the new overtime laws enacted into law earlier this year.  On September 28, the House of Representatives passed bill H.R. 6094, the Regulatory Relief for Small Business, Schools, and Nonprofit Act.  The bill would delay the starting date of the Department of Labor’s new overtime regulations from December 1, 2016, by six months to June 1, 2017.

The original bill issued by the Department of Labor in May of this year would increase the salary limit allowing workers to receive unemployment compensation from the current amount of $23,660 to $47,476 for exempt employees, and the FLSA overtime calculation would be performed for those workers.  The increased salary limit is anticipated to allow an additional 4.2 million exempt employees to be eligible for overtime.  Overtime pay would go into effect any time an eligible employee works more than 40 hours during a given workweek.

Opposing Sides

Advocates of the bill to delay, insist that business owners will be significantly impacted by the bill.  They maintain that the additional payroll expense resulting from the changes in the overtime regulations will result in an increase in layoffs.

Those who support the legislation, including the Obama administration, say that any delay in implementing the new rules and regulations would unduly hinder the promotion of higher pay for workers, preventing them from providing better support for their families.  Many feel that because of Obama’s opposition to any delay of the new overtime rules, the bill to delay moving forward with the changes in December is unlikely to pass.

The Senate is currently considering a bill brought forth by Senator James Lankford (R-Oklahoma) that would also delay implementation of the overtime rules.

If you have any questions about the new overtime legislation or you would like more information about our services, please feel free to contact us for more information.

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