Paul DeCamp, Member of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s Washington, DC, office, was quoted in Business Insurance, in “Proposed Change in Overtime Threshold Likely to Face Challenges,” by Judy Greenwald.

Following is an excerpt:

The U.S. Department of Labor is proposing increasing the threshold below which employers must pay their salaried workers overtime, but its implementation is unlikely to proceed smoothly, experts say.
A 2016 Obama administration proposal was blocked by a federal judge and never implemented, and many anticipate a similar scenario may unfold this time around. …

Under the Biden administration proposal issued Aug. 30, employees who earn less than $1,059 a week, or about $55,000 per year, would be eligible for overtime. The DOL estimates the change will impact 3.6 million workers.

That compares with the $684 per week, or $35,568 per year, standard that took effect in January 2020 during the Trump administration.

The proposal also calls for automatically updating the salary threshold every three years to reflect current earnings data.

It does not address the complex duties requirement under the FLSA, which, for instance, exempts employees who may be required to supervise others. …

Some observers say the provision requiring an automatic escalation may pose more of an obstacle for the proposal’s implementation than the salary cutoff.

Experts point to last year’s ruling by the U.S. Supreme Court in West Virginia v. Environmental Protection Agency, in which the majority opinion said that under the “major questions doctrine” the agency went too far in its attempt to regulate without Congress’ explicit permission. …

“A lot depends on which court it ends up in,” as well as the outcome of the 2024 federal elections, said Paul DeCamp, a member of Epstein Becker & Green in Washington. If the president is re-elected, “it gives the department a lot more time to proceed.

If not, and the regulation is not first finalized and enforced, “one then would expect to see the next administration pull back” and possibly repeal it, he said.

Jump to Page

Privacy Preference Center

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.

Strictly Necessary Cookies

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.

Performance Cookies

These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.