Overtime law update

If you haven’t heard, the overtime threshold increase, created by the Department of Labor (DOL), has come to a halt. The December 1, 2016 start date is no longer in effect, and the existing overtime law implemented in 2004 is still in practice.

21 states filed an emergency preliminary injunction because of the drastic overtime-threshold salary increase of $23,660 to $47,476 annually. U.S. District Judge Amos Mazzant granted a nationwide injunction on November 22nd stating, “The state plaintiffs have established a prima facie case that the [DOL’s] salary level under the Final Rule and the automatic updating mechanism are without statutory authority.”

HR translation: The DOL overstepped their role.

The injunction does not end the proposed threshold, but it does buy everyone more time.

Companies who have already changed salaries and exempt statuses in preparation for the December 1 start date may want to seek legal advice on options moving forward.

At the moment, there is no timeline for when or how the injunction will be addressed. The DOL stands by their decisions on the updated rule and increased threshold; they will continue fighting for it.

 

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