New overtime rule takes effect December 1

Absent extraordinary Congressional action, the Obama Administration’s changes to the executive, administrative, and professional or “white collar” exception to the overtime rule will take effect on December 1, according to Boyd Stephenson, senior vice-president of government affairs at National Tank Truck Carriers.

Beginning on that date, once workers earning the equivalent of less than $47,476 annually or $913 weekly have worked 40 hours in a week, they must be paid 1.5 times their hourly rate for every additional hour worked. NTTC has produced a Compliance Companion that provides a simple checklist for determining whether or not employees’ salaries should be adjusted to comply with the new rule.

In the wake of the outcome of the recent presidential election, NTTC is investigating whether or not the overtime rule can be overturned. Barring truly unlikely events, the rule will take effect on December 1. However, there may be methods to reverse the rule once a new Congress has been sworn in and a new President has been inaugurated. 

These methods include changing the law as well as invoking the rarely-used Congressional Review Act’s power to nullify a regulation within 60 days of its effective date. 

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