WASHINGTON – As of yesterday, the U.S. Department of Labor (DOL) has moved one step closer to formally proposing updates to the nation’s overtime regulations. A proposed rule has been sent to the Office of Management and Budget (OMB) for review, likely the last step in the regulatory process before the proposal is published and the public has a chance to review and comment.

In 2014, President Obama directed DOL to “propose revisions to modernize and streamline the existing overtime regulations.” In particular, the president stated that current regulations exempting certain employees from the Fair Labor Standards Act’s (FLSA’s) overtime requirements “have not kept up with our modern economy.” According to the White House, millions of salaried workers have had to work 50 or 60 hours a week without being paid overtime — and, in some cases, “making barely enough to keep a family out of poverty.”

The FLSA currently requires workers who are paid hourly wages, or those who earn below a certain salary ($455 per week), to receive overtime compensation when working more than 40 hours a week. Certain “executive, administrative and professional” employees are exempted from the law’s overtime requirements if they earn above that threshold – commonly known as the “white collar” exemption. While text of the DOL’s proposed rule is not yet available, it is expected to increase that salary level.

Of particular concern for NACS members, the proposal may establish a minimum amount of managerial duties that a worker would have to carry out to be exempt from overtime. While a definitive timeline for the proposed rule’s publication is not available, OMB review often takes up to 90 days. NACS staff will continue to monitor the proposal’s progress and will update members as the rule moves forward.