Tip Tuesday! Is DOL’s new overtime rule coming sooner than expected?

by Christian Schappel

The buzz out of Capitol Hill is telling employers they’ve got a lot less time to prep for the DOL’s new overtime exemption final rule. 

Just a couple of months ago, the DOL released its fall 2015 regulatory agenda, which stated the agency was targeting a July 2016 release date for the final changes to the rule. But now, that timeline appears to have sped up.

In a new interview with Bloomberg BNA, DOL Secretary Thomas Perez said his agency is “confident we’ll get a final rule out by spring 2016.”

Why the sudden rush?

The Congressional Research Service, a branch of the Library of Congress, may have the answer.

It just released a telling report entitled, “Agency Final Rules Submitted After May 16, 2016, May Be Subject to Disapproval in 2017 Under the Congressional Review Act.”

It details a little-known mechanism by which the next Congress and president may be able to invalidate the DOL’s changes to the FLSA exemption rule, if they don’t arrive soon.

Meet the Congressional Review Act

The Congressional Review Act allows Congress to disapprove “major” final rules promulgated by federal agencies — like the DOL.

A major rule is defined as one that would have an annual effect on the economy of $100 million or more. The changes to the FLSA exemption rules would qualify as major.

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