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Implementation of DOL’s New Overtime Regulations May Be Delayed

The new overtime regulations announced in May, which among other things raised the salary for the white collar exemptions from $23,660 to $47,476, were set to go in effect on December 1, 2016. But on Wednesday, the Republican-controlled U.S. House of Representatives voted 246-177 to pass a bill that would delay implementation of the new regulations to June 2017. The Senate, also controlled by Republicans, will likely pass the bill as well.

But because changes to regulations, rather than the statute itself, do not require approval by the Senate or House, the bill is subject to veto power by the President. It is likely that President Obama would exercise veto power and block the bill, meaning the new regulations would still go into effect on December 1, 2016. Political compromise is also a possibility, with a possible result being a shorter delay of a few months. LITW blog will keep you updated as this political drama plays out.