Jeffrey Ruzal Quoted in “DOL Is Reviewing Overtime Rule”

SHRM

Jeffrey H. Ruzal, Member of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s New York office, was quoted in SHRM, in “DOL Is Reviewing Overtime Rule,” by Allen Smith.

Following is an excerpt:

More workers should be eligible for overtime pay, said Secretary of Labor Marty Walsh, who testified recently that the wage level to qualify for overtime pay is "definitely" too low. Speaking during questioning before the House Education and Labor Committee, he said the U.S. Department of Labor (DOL) is reviewing the overtime regulation and he believes there should be automatic and regular updates to the overtime threshold.

Rep. Mark Takano, D-Calif., led the questioning, noting that he sent a letter to encourage the DOL to adopt a salary threshold that by 2023 would be around $85,000 annually. The overtime threshold now is $35,568 annually or $684 a week. Workers who don't earn this amount have to be paid overtime, even if they're classified as a manager or professional. …

"The bottom line is that businesses should brace themselves for the possibility of some increase to the exempt employee salary threshold," said Jeffrey Ruzal, an attorney with Epstein Becker Green in New York City. "It is advisable that businesses start to prepare for the real possibility that there will be an increase in some measure during the Biden administration. This includes conducting a self-audit of one's workforce to determine how potential adjustments could be made without jeopardizing headcount or organization of one's workforce."