DoL's final overtime rule may affect retirement, other benefit programs

The Department of Labor issued a final rule on the Fair Labor Standards Act’s overtime pay requirements for most “white-collar employees,” effective December 1, 2016, and new requirements could have implications for sponsors of retirement plans (primarily 401 (k) and similar arrangements). The final rule might affect a retirement or other benefit plan’s participation base or could raise concerns if the programs shift toward favoring the highly compensated. Given the significance of the final rule’s changes, its impact on the workforce, and a fast-approaching deadline, employers are encouraged to consult with legal counsel and other professional advisers to discuss their options and strategies for implementing changes and ensuring compliance.