December 1, 2016

Injunction pauses DOL OT law scheduled to take effect December 1

If you are scrambling to figure out how to make all those payroll changes before December 1, you can relax—for now. The Department of Labor (DOL)’s Overtime Final Rule was placed on hold due to a federal court ruling on November 22 by Judge Amos L. Mazzant, III, of the U.S. District Court for the Eastern District of Texas, Sherman Division.

Don’t uncrunch those overtime pay numbers just yet, though. The DOL states, in the Wage and Labor section of their website, “We are currently considering all legal options.”

What is a likely legal option for the DOL?
The DOL could file an emergency motion, seeking a stay of the injunction. If granted, the rule is back.


If the Overtime Final Rule is restored, what would it mean for my business?
Under this law, any of your employees who earn up to $47,476 per year would be eligible for overtime pay. Currently, the overtime exemption threshold is $23,660 per year.


The law would raise the “highly compensated employee” threshold to $134,004. This means you only have to present minimal proof to show employees earning this amount or more are not eligible for overtime. The current threshold is $100,000.


If you want the legal breakdown, the DOL has the answers—
Final Rule: Overtime Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees under the Fair Labor Standards Act

What now?
Beyond this particular law-in-flux, stay alert as we begin 2017 with a president and administration who have vastly different ideas than the status quo. We can expect changes. Like them, dislike them, no matter. They’re on their way. They could be in the form of new labor laws that affect how you compensate employees and reporting requirements. It could be a completely different tax structure that causes you to reevaluate your entire business plan. We don’t know what is ahead, only that we are here to share any information we can to help you navigate the way. 





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