The information in this blog post refers to the proposed and final rules published by the U.S. Department of Labor in 2015-2016. To see the most recent information, click here.
On March 14, 2016 the U.S. Department of Labor submitted its overtime rule to the White House Office of Management and Budget (OMB) for review. Once finalized, the rule is expected to expand overtime protections to millions of American workers in 2016.
The final rule could be made public as early as April, based on the OMB’s typical review process, and would take effect within 60 days of publication in the Federal Register. This potential time frame would give employers little time to comply with the new wage-and-hour standards.
Time Is Ticking for Employers
Overtime expansion is expected to have a major operational, administrative and cultural impact on many businesses and could cost employers more than $5.2 billion. Service industries like restaurants, retail and hospitality may be hit especially hard.
It’s important for companies to start evaluating their workforce now to determine the best options for controlling costs and managing the administrative burden under the new rule.
Stay tuned for more important information about managing overtime expansion right here on the Paycom Blog.