Yesterday, federal judge Amos L. Mazzant III of the Eastern District of Texas issued a nationwide injunction against the new overtime rule set to take effect December 1, 2016. The new regulation would raise the salary limit for executive, administrative and professional overtime exemptions from $23,660 per year to $47,476 per year.
The injunction temporarily halts the implementation of the rule for an indefinite amount of time. The Department of Labor has already stated they will continue to try and move forward with the rule, while other groups are fighting to stop it. This leaves employers with a couple of different options.
If you have already made changes to employee salaries and statuses to comply with the new rule you can:
- Keep the changes you have put into place, in case the rule does move forward in the near future, or
- Revert back to the salaries and statuses you had previously and wait to see if the rule moves forward. If you choose this option and have already asked your Payroll Specialist to make some changes to your payroll, please inform them of your intention to revert back as soon as possible.
If you have not yet made any changes to employee salaries and statuses to comply with the new rule, we recommend that clients wait and see if the rule does move forward before making any changes. We will continue to keep you informed of any new information about the overtime rule.
If you have any questions, please feel free to reach out to the Human Resources department at Helpside at humanresources@helpside.com or 1-800-748-5102.