Now that the Department of Labor’s (DOL) overtime rule changes have been put on hold, what should employers do? That, in part, depends on the steps your company took to prepare.
For a Limited Time receive a
FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with
customized information for your industry, location, and job.
Get Your Report Now!
In May 2016, the federal DOL released final changes to the overtime regulations. With this final rule, the DOL sought to update the salary level required for exemption. These changes were to be effective on December 1, 2016. But, just a week before the December 1, 2016, effective date, the U.S. District Court for the Eastern District of Texas issued an emergency injunction, stopping the DOL from enforcing the long-awaited changes to the federal overtime rules on a nationwide basis.
This means that until further action from the courts, Congress, or the new administration, the minimum salary threshold for the white-collar exemptions will remain where it has been since 2004, at $455 a week. The salary threshold for the highly compensated employee exemption will remain at $100,000 per year.
Right now, from a legal standpoint, it’s business as usual—it’s as if the final rules never existed. If, however, you have already made changes to employees’ pay or classification status in anticipation of December 1—it’s a different story. While there is nothing legally wrong with rolling back changes you have already made, this could prove problematic from an employee relations perspective.
Here are some options and pros and cons to think about as you consider your next steps in dealing with employees who fall between the $455 and $913 per week salary level.
If you are having trouble viewing the infographic, click here.
