Daily Labor Report® is the objective resource the nation’s foremost labor and employment professionals read and rely on, providing reliable, analytical coverage of top labor and employment...
Nov. 18 — A Labor Department final rule expanding overtime eligibility to those earning up to $47,476 per year would apply to federal employees under a proposed rule issued by the Office of Personnel Management.
The annual salary level required for exemption from the Fair Labor Standards Act’s overtime provisions under the OPM’s current regulations is $23,660. The OPM rule, issued Nov. 18, would revise the agency’s regulations under the FLSA by raising the annual salary threshold to $47,476.
The proposed OPM rule also would provide “for future automatic updates to that level consistent with the automatic updating mechanism utilized in DOL’s FLSA regulations,” the agency said. The provisions updating the salary non-exemption level and calling for future automatic updates would “harmonize” the OPM’s FLSA regulations with the final rule the Labor Department issued on May 23, the OPM said.
The Labor Department rule as of now is scheduled to take effect Dec. 1, although it has been challenged in court by a coalition of business groups and a group of 21 states. The lawsuits were consolidated by a federal judge on Oct. 19.
There are about 2.1 million federal executive branch employees, including about 1.8 million full-time, permanent employees.
About 20 percent of the non-seasonal permanent federal workforce earned between $20,000 and $50,000 in fiscal year 2015, Mallory Barg Bulman, research and evaluation director at the Partnership for Public Service, a Washington-based nonprofit, told Bloomberg BNA on Nov. 18.
This amounts to roughly 365,000 employees, Bulman said, citing figures from the OPM’s personnel database.
By agency, the Department of Veterans Affairs potentially would be most affected by the OPM proposed rule, she said. About 113,000 VA employees earned between $20,000 and $50,000 in FY 2015, Bulman said.
The Army had about 52,000 employees earning between $20,000 and $50,000, and the Department of Homeland Security had about 38,000 employees with annual salaries in that range, Bulman said.
She noted, however, that many federal workers receive overtime based on their job classifications, regardless of their salaries.
President-elect Donald Trump may seek to dismantle the DOL rule once he takes office in January, possibly by instituting a different salary threshold.
But doing so will require additional rulemaking, which will take time. And any new rule could be subject to new court challenges.
Comments on the proposed overtime rule are due within 30 days of its scheduled publication in the Nov. 21 Federal Register, the OPM said.
To contact the reporter on this story: Louis C. LaBrecque in Washington at firstname.lastname@example.org
Text of the proposed rule is available at http://src.bna.com/ka6.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)