Paul DeCamp, Member of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s Washington, DC office, was quoted in Employee Benefit News, in “Employers Likely to Challenge DOL Overtime Rule,” by Kathryn Mayer, Nick Otto, and Caroline Hroncich.
Following is an excerpt:
Although the Labor Department’s newly proposed overtime rule may be good news for workers, it’s less so for small and medium-sized employers, who are likely to feel the biggest impact of the change. A potential increase in administrative burdens, not to mention wages, likely will result in legal challenges to the rule, experts say.
The Labor Department on Thursday proposed to increase the salary threshold for overtime eligibility to $35,308 up from the current $23,660. If finalized, the rule would expand overtime eligibility to more than a million additional U.S. workers, far fewer than an Obama administration rule that was struck down by a federal judge in 2017. …
Paul DeCamp, a labor and workforce management lawyer at Epstein Becker Green, calls the DOL’s proposal “moderate” and “consistent with what Secretary Acosta has been signaling for almost two years.”
“Assuming that the final rule ends up mirroring the proposal, this rulemaking seems likely to withstand legal challenge, or even to avoid a challenge altogether,” DeCamp says. “Employers should begin their planning now for how they will adapt to the new rule, while remaining mindful of state and local considerations such as alternative compensation thresholds, notice requirements and the like.”