Changes on the way:
U.S. Labor Department's
Overtime Regulations
April 8, 2014
Dentons US LLP
Overview of Today's Webinar
4/8/2014 Dentons US LLP
• Labor Department's Process for Promulgating New Overtime
Regulations...
Labor Department's Process for Promulgating New
Overtime Regulations
4/8/2014 Dentons US LLP
• March 2014: Pres. Obama's m...
Substantive Changes the Labor Department May
Consider: Executive, Administrative and Professional
4/8/2014 Dentons US LLP ...
Substantive Changes the Labor Department May
Consider: Executive, Administrative and Professional
4/8/2014 Dentons US LLP ...
Opportunities to Influence the Regulation Outside the
Usual Regulatory Process
4/8/2014 Dentons US LLP 6
• Grassroots – Ge...
How Affected Employers Can Prepare for the New
Regulations
4/15/2014 Dentons US LLP
1. Don't Wait For Trouble
2. Conduct P...
Questions?
84/8/2014 Dentons US LLP
Global presence
4/8/2014 Dentons US LLP 9
Thank you
Seth D. Harris
Sander Lurie
John R. Russell IV
Dentons US LLP
1301 K St., NW - East Tower, Suite 600
Washington,...
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Changes on the way: U.S. Labor Department's Overtime Regulations

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Changes on the way: U.S. Labor Department's Overtime Regulations

  1. 1. Changes on the way: U.S. Labor Department's Overtime Regulations April 8, 2014 Dentons US LLP
  2. 2. Overview of Today's Webinar 4/8/2014 Dentons US LLP • Labor Department's Process for Promulgating New Overtime Regulations • Substantive Changes the Labor Department May Consider • Opportunities to Influence the Regulatory Process • How Affected Employers Can Prepare for the New Regulations 2
  3. 3. Labor Department's Process for Promulgating New Overtime Regulations 4/8/2014 Dentons US LLP • March 2014: Pres. Obama's memorandum to Secretary Perez • Currently: DOL drafting proposed regulation/making policy decisions • Summer 2014: DOL sends draft proposed regulation to OMB's Office of Information and Regulatory Affairs (OIRA) for 90-day (or shorter) review • Mid-to-Late Fall 2014: Publication/Notice and comment for 90-120 days (extension possible) • Late Winter 2015: Comment period ends/DOL begins review of record and drafting final regulation • Fall 2015 or Winter 2015-16: DOL sends draft final regulation to OMB's OIRA for 90-day (or shorter) review • Mid-2016: Publish final regulation/Submit to Congress pursuant to Congressional Review Act 3
  4. 4. Substantive Changes the Labor Department May Consider: Executive, Administrative and Professional 4/8/2014 Dentons US LLP 4 Existing four-part test and likely focus of proposal: 1. Salary basis 2. Salary threshold • Currently $455/week, likely to increase • "Highly compensated employees” 3. Substantive duties • "Executive" - Supervision of 2 or more employees - Authority to hire/fire or recommend hire/fire/promote/advance other employees
  5. 5. Substantive Changes the Labor Department May Consider: Executive, Administrative and Professional 4/8/2014 Dentons US LLP 5 3. Substantive duties (cont.) • "Administrative" - "Exercise of discretion and independent judgment" - Specific list of examples: e.g. insurance claims adjusters, financial services industry • "Learned Professional" and "Creative Professional" - Specific list of examples: e.g., nurses, dental hygienists, funeral directors 4. "Primary duty" • 50% "rule of thumb”? (cont.)
  6. 6. Opportunities to Influence the Regulation Outside the Usual Regulatory Process 4/8/2014 Dentons US LLP 6 • Grassroots – Generating letters during an open comment period • Grasstops – Editorial comments • Coalition building – Strength in numbers • Paid media – Advertising in the Washington DC media market • Congress • Hearings • Letters • Congressional Review Act • Appropriations Riders
  7. 7. How Affected Employers Can Prepare for the New Regulations 4/15/2014 Dentons US LLP 1. Don't Wait For Trouble 2. Conduct Periodic Classification Reviews 3. Closely Examine Exemptions for High Skilled/High Paid Workers 4. Consider Back Pay for Reclassified Employees 5. Eliminate "Off-the-Clock" Practices 6. Other potential traps: • Regular Rate Calculations • Discretionary Bonuses • Fluctuating Workweeks • Contingent Workforce • State Wage Laws 7
  8. 8. Questions? 84/8/2014 Dentons US LLP
  9. 9. Global presence 4/8/2014 Dentons US LLP 9
  10. 10. Thank you Seth D. Harris Sander Lurie John R. Russell IV Dentons US LLP 1301 K St., NW - East Tower, Suite 600 Washington, D.C. 20005 USA Stuart Blaugrund Dentons US LLP 2000 McKinney Avenue Suite 1900 Dallas, Texas 75201 USA © 2014 Dentons. Dentons is a global legal practice providing client services worldwide through its member firms and affiliates. This publication is not designed to provide legal or other advice and you should not take, or refrain from taking, action based on its content. Dentons US LLP. Please see dentons.com for Legal Notices.

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