One of the most far-reaching changes to Fair Labor Standards Act (FLSA) overtime regulations was about to begin effective December 1st.
This change doubled the threshold for exemption from overtime pay to $47,476. What’s more, the exemption would have automatically been adjusted every three years beginning in 2020. On November 22, 2016 a federal judge in Texas halted this change and put on hold a major initiative of the Obama administration.
At this time, employers do not need to implement the FLSA changes by December 1st. However, after hearing the full case, the court could allow the changes to move forward. On the other hand, the incoming Trump Administration will now have time to weigh-in on the overtime initiatives sponsored by the outgoing Obama administration. WBA’s Human Capital Services team will closely monitor this important development and keep clients appraised in the weeks ahead
Many employers have already implemented the new overtime regulations.
Undoubtedly, this can pose a problem for employers having to pull-back from overtime eligibility notices that were implemented over the past few months leading up to the effective date of December 1, 2016.
Employers will have to think about which approach will cause the least disruption to their workforce. Some employers may decide to keep the changes – if already implemented – and abide by modifications put forth the by the Trump administration, and made into law by the FLSA. Employers, who have not reclassified their employees for overtime purposes, would want to hold-off and keep a close watch on developments going forward.
Have you implemented any changes? How does this affect you, at this time?