Last year we talked a lot about preparing for the change to the overtime rule that increased the salary requirement for certain white-collar employees to be considered exempt from overtime. At this point, the U.S. Department of Labor’s (DOL) overtime rule is unlikely to come to fruition.
You may remember the rule—which was scheduled to take effect Dec. 1, 2016—was delayed by federal court injunction on Nov. 22, 2016. In December, the DOL filed for an expedited appeal of the court injunction.
However, on Jan. 25, 2017, the DOL, which is now under the direction of President Donald Trump, requested a 30-day extension to file a brief in its appeal. Recent actions by the Trump administration suggest that it is unlikely that the overtime rule will ever become effective, even if the DOL is successful in its appeal.
For now, employers can rely on existing overtime exemption rules. It is still a good idea to make sure that your employees who are currently listed as exempt, do meet the current requirements. Misclassifying employees as exempt from overtime is one of the most common compliance mistakes made by small businesses.
Employers that have already made adjustments to comply with the new rule may find it difficult to reverse any changes. For employers looking to roll back salary adjustments, carefully consider employee morale and the potential impact that rescinding promised changes will have on your company. Our team of HR experts can help clients work through this tough situation.
Questions? Contact our HR team at 1-800-748-5102 or humanresources@helpside.com