The U.S Department of Labor’s Wage and Hour Division has finalized its much anticipated revisions to the rules governing overtime compensation. The revisions, in part, increase the income level of those who are exempt from overtime pay to $47,476, almost doubling the prior threshold, allowing a greater number of employees to qualify for overtime pay.

According to the White House, the modifications are expected to extend overtime protections to an additional 4.2 million Americans and significantly increase wages for workers over the next decade. The revisions come at a time when the country, and federal contractors in particular, are seeing the Obama Administration and the federal agencies “double-down” on commitment to fair pay.

The new regulations, with which employers will have until December 1, 2016 to comply, are yet another addition to the Agency’s pay enforcement toolbox which already includes Federal Minimum Wage, Pay Transparency regulations, Directive 307 and Item 19 pay data submission requirements for OFCCP audits. The toolbox will soon be expanded further with the new EEO-1 pay data collection tool.

Employers have experienced invigorated pay investigations during OFCCP compliance reviews, and have already started seeing compliance officers inquire about compliance with Federal Minimum Wage standards. Consistent with its pay enforcement agenda, we expect to see inquiries about compliance with these new overtime standards once they go into effect.

For more information about these new regulations, please join our Wage & Hour colleagues on Monday, May 23, 2016 at 11:30 Eastern for a webinar discussing the changes.

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Photo of Laura A. Mitchell Laura A. Mitchell

As co-leader of the firm’s ESG group, Laura Mitchell partners with her clients to evaluate, set, achieve and monitor their organizational culture and human capital goals. She focuses her practice on data analytics, including pay equity and other employee analytics, working side-by-side with…

As co-leader of the firm’s ESG group, Laura Mitchell partners with her clients to evaluate, set, achieve and monitor their organizational culture and human capital goals. She focuses her practice on data analytics, including pay equity and other employee analytics, working side-by-side with employers to build programs that benefit employees and create a stable, high-functioning workplace. Understanding that an inclusive, values-based culture provides a crucial competitive advantage in the modern workplace, Laura enjoys counseling companies on the development of proactive and equitable pay and diversity practices.

In Laura’s version of the reimagined workplace, attention to human capital issues, especially DEI and pay equity, would be the rule rather than the exception nationwide and she works with companies across all industries—both new and well-established multi-national organizations of all sizes—to realize this vision for her clients’ ongoing success. She helps clients understand all issues across the spectrum of their journey, helping to establish regular analyses as well as counseling organizations on implementation and compliance obligations, where applicable. Committed to putting her clients’ organizational goals first and foremost, Laura views herself as an extension of her clients’ team, responsible for providing proactive guidance and engaging in transparent, ongoing communication.

Laura also represents companies in OFCCP matters, preparing for and defending OFCCP audits, and counseling employers on issues stemming from OFCCP regulations. She personally oversees the development of hundreds of Affirmative Action Plans for clients each year and is intimately involved in the defense of OFCCP audits. Her approach to compliance is one of facilitation and conciliation while simultaneously advocating in the best interests of her clients.