Prior to the Thanksgiving holiday, a federal judge in Texas issued a nationwide preliminary injunction on the Department of Labor’s (DOL) overtime regulations set to take effect December 1, 2016. The new rule would have raised the minimum salary level for administrative, professional and executive overtime exemptions from $455 a week ($23,660 annually) to $913 a week ($47,476 annually).
The judge stated that “nothing in the [Fair Labor Standards Act] indicates that Congress intended the [DOL] to define…a minimum salary level…Consequently, the Final Rule…is unlawful.”
The DOL responded on its webpage that is strongly disagrees with the decision and is considering all legal options.
What should employers do?
While employers won’t need to comply with the original December 1 overtime rule deadline, it’s important to understand the consequences of unwinding any changes until a final decision is reached on the fate of the regulation. Most industry sources recommend a wait-and-see approach.
For more information, contact Shirley Lind, CEBS, SPHR, who leads Bukaty Companies’ Human Resources division, at slind@bukaty.com.
