Overtime Rules: Questions Answered

Plews Shadley Racher & Braun, LLP offered to follow up on a few questions from members regarding the new labor overtime rules discussed at the Executive Directors Conference in September. Here they are:

  • The U.S. Department of Labor (DOL) maintains a number of fact sheets on various wage/hour topics.  DOL maintains a searchable index of available fact sheets.
  • There are multiple DOL resources (also mentioned in the PowerPoint presentation) that can help employers navigate the new overtime rule, including the Small Business Compliance Guide and the FAQ Section. Non-profit entities should consult DOL’s Non-Profit Guidance.
  • There was a question about when government entities can use compensatory time. Developing a compliant comp time program requires a fact intensive analysis, but there is some helpful information available online. A DOL fact sheet discussing comp time broadly is available here. The rule setting forth the “prescribed conditions” mentioned in the fact sheet is available here.
  • There was a question as to government contractors and overtime obligations.  This DOL fact sheet provides information regarding for entities that contract with the federal government. Contracting entities should review applicable state and local laws, as well as the contracting documents, to determine which minimum wage/overtime standards apply.

Attempts to block or delay the new rule are ongoing. There have been multiple lawsuits filed to block the new rule in recent weeks, including one in which 21 states are plaintiffs. Additionally, the House recently voted to delay implementation of the rule and the Senate is considering a companion measure. This proposed legislation is unlikely to become law, as the Obama Administration has signaled that it will veto the bill.

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