Living in Limbo: The Future of the Overtime Rule
May 25, 2017It's been a while since I've shared with you all, but I am glad to be back and addressing important topics in Employment. Today, we discuss the Overtime Rules from the DOL.
Last year there was much anticipation about the release of new Overtime Regulations. The Final Regulations were released by the DOL with an anticipated December 1, 2016 effective date. Many employers started the process of changing how employees were categorized and paid in their organizations. Then, on November 22, 2015, less than 10 days before the rule was to go into effect, an injunction was issued by a federal judge in the eastern district of Texas. The judge said that the DOL had exceeded its authority under the Fair Labor Standards Act (FLSA). So, six months later, the injunction is still in place. This case has been appealed to the 5th Circuit and is currently pending. In April 2017, the DOL had most recently requested a second extension to file a reply brief to allow time for a new labor secretary to be confirmed.
So, what does this mean for employers? For now, the injunction that was issued in November still stands while this litigation is pending. Until a final resolution is reached, it would behoove employers to make sure they have a plan in place for these regulations to potentially go into effect. It is also beneficial to make sure that job descriptions and responsibilities have been revamped as needed since misclassification can still be a potential wage and hour issue for employers even without the revised rule.
An update will be posted as developments occur in this case.
Nicole Crump, JD, CIC
Director of Employment ADR
EDR Systems
This information is the opinion of the writer and is not meant to be construed as creating an attorney-client relationship or as legal advice to an individual or business. Please consult your attorney if you need legal advice on the issues above.