The Department of Labor’s (DOL’s) proposed rule raising the salary threshold for the exemption for white-collar workers from minimum wage and overtime rules has gone to the White House (the Office of Information and Regulatory Affairs, or OIRA) for final review. OIRA review is the last step prior to finalization of the proposed rule.
DOL’s proposed rule would raise the salary threshold—the level of annual earnings at which the exemption from the overtime rule kicks in—to around $55,000. The exact amount will depend on data on average wages that are current as of the rule’s finalization date. DOL says projections suggest that the salary threshold could go as high as $60,209/year by that date. The current salary threshold is $35,568/year.
Prospects: There has been considerable opposition to the proposed increase in the salary threshold rule. That opposition has already resulted in DOL reducing its proposed increase. But whether OIRA review will result in further changes prior to finalization is as yet unknown. OIRA can take months to complete its final review, but it can also move quickly. So, predictions of a finalization date are mushy—but most insiders expect a final rule to be released within the next two to four months.
NAIFA Staff Contacts: Michael Hedge – Senior Director – Government Relations, at mhedge@naifa.org, or Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org.