A lot of companies are (quite sensibly) concerned about the Department of Labor’s change to the federal overtime rule, which would have changed the Fair Labor Standards Act on December 1. The overtime rule has been temporarily blocked, but what do you need to know?
Right now, salaried employees who make more than $23,660 annually and perform tasks consistent with executive, administrative, or professional tasks are exempt from overtime pay regulations. The pending change would ensure that any employee making less than $47,476 per year would no longer be listed as a salaried employee. Instead, they will be required to be paid on an hourly basis, and therefore be subject to overtime pay regulations. However, as of November 22, a Texas District Court Judge issued a preliminary injunction. This will defer the implementation of the proposed change until at least January 20th, 2017. The delay is significant because it will allow the Trump administration to reopen or revise the final ruling.
We’ve pieced together a few articles that will help you to understand the nuances of this injunction, and what the changes will mean for your business.
DOL’s Proposed Overtime Rule Higher Education’s Comments & Concerns, CUPA-HR News (pdf)
Happy Holidays from the Draker Cody team!