Temporary Halt to Overtime Rule Regulations
On November 22, 2016, a federal judge issued a preliminary injunction that temporarily blocks the new overtime regulations on a national basis that were scheduled to take effect on December 1, 2016. The Department of Labor (DOL) planned on implementing a minimum salary threshold increase to the Executive, Administrative, and Professional classifications from $455 per week ($23,660 annually) to $913 per week ($47,476 annually). On September 20, 2016, 21 states and numerous business organizations filed a lawsuit against the DOL challenging the new overtime regulations and argued they would be permanently harmed if the new rule was executed.
Since the preliminary injunction came only nine days prior to the new regulations taking effect, many employers have communicated their changes and started the implementation stage. These employers will need to determine if the best solution is to continue to implement, suspend, modify, or reverse the changes. Employers that have not made changes should still continue the planning process, as this is only a temporary stop. It is important to recognize that this is not a permanent stop to the new overtime rules. The new rules will likely be implemented in its current form or under a revised version in the near future.
If you have questions about this, please call your Findley Davies | BPS&M consultant.