The Department of Labor filed a motion for an expedited briefing of its appeal of a federal judge’s decision to put the brakes on the federal overtime rule, but that shouldn’t affect what companies do at this point.
A federal judge in Texas put the brakes on the Department of Labor’s new federal overtime rule on Nov. 22, which would have doubled the Fair Labor Standard Act’s (FLSA’s) salary threshold for exemption from overtime pay.
The judge’s preliminary injunction effectively halts the implementation of the new rule, which was scheduled to take effect on Dec. 1, 2016.Meanwhile, Congressional Republicans plan for the House of Representatives
to adjourn early for the year so they can buy time—until President-elect Donald Trump takes office—to try to override the new overtime regulations.
The U.S. Department of Labor (DOL) published monumental changes to the overtime rule that will make approximately 4.2 million currently exempt employees eligible for overtime pay later this year.
The Fair Labor Standards Act (FLSA) overtime rule determines whether employees are eligible or exempt for overtime pay. Exempt employees, because of their rate of pay and type of work that they do, are not eligible for overtime pay for hours worked over 40 in a workweek. Nonexempt employees must be paid time and a half for any hours worked more than 40 in a workweek.
Before the Nov. 22 preliminary injunction, all employers had to comply with the changes made to the overtime regulations of the Fair Labor Standards Act by Dec. 1, 2016. That deadline has been put on hold while a federal judge reviews the case.
What Is The New FLSA Overtime Rule?
- The rule extends overtime protections to 4.2 million workers who are not currently eligible under federal law.
- Workers who do not earn at least $47,476 a year ($913 a week) will have to be paid overtime, even if they’re classified as a manager or professional.
- The Department of Labor will increase the salary threshold every three years. Based on current projections, the salary threshold is expected to rise to more than $51,000 with its first update on January 1, 2020.
- Employers must comply with the new regulations by December 1, 2016 (NOTE: This has been delayed as a federal judge reviews the rule).
- Full Coverage: Overtime Rule Issued; Increase Every Three Years Included
- Read the full text of the FLSA overtime rule.
FLSA Overtime Rule News:
What It Means For Your Organization:
The overtime rule changes might be embraced by newly nonexempt workers, while also having a significant effect upon small businesses, higher education and nonprofit organizations.