Published Reports indicate that the Obama Labor Department is intent on limiting the definition of "white collar" (which is exempt from overtime) to categories which would include executive, administrative, and professionals from currently those that at most earn $455 per week, that is $23,660.00 per year, to now to those that earn at least $970 per week or $50,444.00 per year. Such change can bring in an entire new category of advisors who previously would not have been entitled to over-time. Firms such as LPL Financial who in our opinion would have to give great consideration as to who they refer to as employees vs. independent contractors, and may need to somehow reduce many brokers to part-time positions, so as to avoid having to pay time and a half overtime. We expect firms such as LPL and others to fight these provisions but time will tell.
The Notice of Proposed Rulemaking published by the Labor Department on July 6, 2015, in the Federal Register invited all interested parties to submit written comments on the proposed rule by September 4, 2015. After reviewing and considering all the comments, the Labor Department will determine the final language of the rule next year.
Stuart Meissner Esq.
Stuart D. Meissner Esq. is an experienced FINRA attorney who has practiced law for over 27 years, including as a FINRA Attorney, Securities Regulator and Prosecutor.