Overtime Pay Changes Delayed
A nationwide injunction issued by a federal judge has blocked the new overtime-pay regulation which was scheduled to begin on December 1, 2016. Since the decision was announced in May, there has been much debate about the Department of Labor’s mandatory overtime pay decision, which would have required overtime pay for more than 4 million new workers by increasing the salary level for exempt workers from $23,660 to $47,476.
Because the rule will not go into effect on December 1, employers are not required to either increase salaries for exempt workers or change currently exempt employees to hourly positions on December 1, 2016. State laws regarding salary levels remain unchanged due to this ruling.
The government is expected to appeal the injunction, but it’s unlikely that any progress will be made before December 1. The injunction is a preliminary injunction, not a permanent one, so it is possible that the rule and its increased salary level will eventually be implemented. Additionally, Congress could pass legislation to increase the salary level by a smaller amount than the DOL’s proposed salary level.
Contact Scott Human Resources if you have questions about how the pending changes impact your business and employee structure today by emailing Kristin@ScottHR.com or call 785-272-5410.