Department of Labor Submits Final Overtime Rule to Office of Management and Budget

August 13, 2019 (WASHINGTON INSIDER ALERT) - On August 12, 2019, the Department of Labor (DOL) submitted the final rule updating the salary threshold for the "white collar" exemptions to the Fair Labor Standards Act (FLSA)'s overtime pay requirements to the Office of Information and Regulatory Affairs (OIRA). OIRA, part of the president’s Office of Management and Budget (OMB), is required to review all draft and final standards as well as all regulatory actions before implementation. This is the final step before the overtime rule is published. While OIRA has 90 days to conduct its review, in most cases review takes 30 to 60 days. If this timetable holds true, it is likely that DOL will publish a final rule in October or November.

While the rule is being reviewed, the public is not provided any specific details on changes to the proposed rule. However, interested stakeholders are allowed to file comments with OIRA and request a meeting with the administrator while a rule is under review (for meeting requests please use this link). CUPA-HR will provide additional details on how our members can submit written comments to OIRA and on our plans to submit a follow-up letter on behalf of higher education that reiterates the comments we submitted to DOL in response to their proposal.

Those comments, signed by 18 other higher education associations, offer support for DOL’s decision to update the salary threshold by applying the methodology used in 2004 to current salary data and its decision not to make any changes to the duties test. It also included several suggestions for improving the proposal.

As always, CUPA-HR will continue to advocate on behalf of higher education and will keep all members updated of further developments.