DOL OT RULE UPDATE!!!! Release Date Now Expected in June of 2016

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March 18, 2016

Multiple D.C. insiders and media outlets have reported that earlier this week the DOL forwarded the proposed final overtime rule to the Office of Management and Budget (OMB) for its mandatory review.  (If right now you are asking yourself, “what is the proposed final overtime rule?” then see our previous e-alert by clicking here: What is the Overtime Proposal and Why Should I Care?)  The OMB’s review of a proposed rule generally takes 30 days. This means the DOL could issue the final rule by mid-April, with an effective date as early as June.

The DOL’s urgency might be due to the Congressional Review Act.  This law empowers Congress to review any new federal regulation issued by government agencies and to overturn it within 60 days.  The president can then veto the act by Congress, thus saving the regulation.  Normally, the Congressional Review Act has no teeth because the sitting president generally supported the rule in the first place. However, in this situation, while Obama will certainly veto any action by Congress to invalidate the proposed overtime rule, the new Republican president most certainly will not. According to the Congressional Research Service, if the DOL’s overtime rule isn’t released by May 16, the rule could be at the mercy of the new president. We will keep you informed as to new developments.

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