Important Update: As you may have heard over the holiday, on November 22, 2016, a federal judge in Texas issued a nationwide temporary injunction halting the new overtime rule from going into effect on Thursday, December 1, 2016.
The court’s decision, while welcome news for employers, is likely to cause even more confusion and frustration, as it remains to be seen whether the temporary injunction will turn into a permanent injunction and whether it will survive an appeal. The uncertainty of the injunction when coupled with the short notice, means that many employers who have already taken steps and implemented plans to prepare for the new overtime rule may struggle with what to do now that the rule has been put on hold.
So, what do you do now?
- At this time, employers do not need to implement changes by the December 1, 2016 deadline. After hearing the full case, the court could allow the rule to go forward; there may be an appeal to the circuit court, which could overturn the rule; or the incoming Trump Administration now has more time to make changes, including ending the rulemaking permanently;
- If you have already implemented the rule, consider leaving your decisions in place. Those of you who have already made substantial preparations and changes should consider whether moving forward as planned or adopting a “wait and see” approach works better. Each workplace is different and employers must consider the best approach for their environment. For example, an employer will not need to begin paying overtime to employees who would have been non-exempt under the new rule. On the other hand, if you raised some employees’ salaries to meet the proposed threshold, you may want to keep those in place, or determine what effect reversing this decision may have on employee morale.
What do I do going forward? As the case progresses and the political landscape changes, it may be difficult to determine whether the overtime rule will go into effect in its current form (or at all). Regardless, CowanPerry, PC is here to assist you in navigating this constantly shifting landscape and its attorneys are available for you to discuss your options moving forward at this time.
If you are an employer and have questions or would like to discuss further, please email: New DOL OT Rule and we will be glad to assist you.