If you have any questions in regards to the above, please do not hesitate to contact our offices so that we may explain the amendments to the provisions of the Code in more detail. Our address is:
Fiddler González & Rodríguez, P.S.C., P.O. Box 363507, San Juan, PR 00936-3507. Our fax (787) 759-3108.
We welcome your questions and comments.
José J. Santiago
Carlos A. Padilla
Antonio L. García
March 23, 2016
FINAL FLSA EXEMPT EMPLOYEES RULES MOVE FORWARD,
EXPECTED TO BE PUBLISHED IN MAY 2016
On March 14, 2016, the U.S. Department of Labor (DOL) forwarded its proposed Part 541 Exempt Employees regulations to the White House’s Office of Management and Budget (OMB). This is the final step before the new regulation is officially published. The OMB generally takes about 30 days to review a new regulation before it is published. The regulations will be effective 60 days after their publication.
It is believed that the Obama administration is seeking to expedite publication to avoid possible complications brought on by the Congressional Review Act. Under the CRA, Congress has 60 legislative days from receipt of a final rule to pass a resolution disapproving the final rule and preventing it from going into effect. If a major rule is submitted to Congress with fewer than 60 session days remaining on the legislative calendar, then the next Congress would have a similar 60-day period to consider the regulation. Publishing the regulations as quickly as possible would allow the Obama administration to veto a Congressional resolution disapproving the final rule.
We informed you of the proposed regulation on Labor Watch 2015, No. 2 of July 2, 2015. We explained that the DOL proposed to increase the standard salary level from $23,660 to $50,440 annually and to establish a mechanism for automatically updating the salary and compensation levels going into the future. The proposed change would make several million more employees eligible for overtime payments, which could have a significant impact on employers.
Employers should move swiftly to evaluate their currently exempt employees to determine how they will be impacted by the new regulations. For exempt employees who do not meet the anticipated new salary threshold, employers must consider whether the anticipated financial impact will be greater by raising the salary of the employee to meet the new exempt standard or by allowing the employee to be eligible for overtime and more closely managing hours worked.
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