A 2016 Political Football: The New DOL Overtime Exemption Rule

A 2016 Political Football:  The New DOL Overtime Exemption Rule

cm-blog-overtime-pay-imageReady…Set…OH WAIT! The U.S. Department of Labor’s (DOL’s) controversial new rule on overtime exemptions was to take effect this week, on December 1, 2016. (See our previous blog here ) 21 States and various business organizations have fought against implementation of the rule; and now, their efforts have paid off – at least for a little while. On November 22nd, Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas ruled that DOL overstepped its authority and stopped the rule from taking effect. This will preserve the status quo until the court can determine the DOL’s authority to make the final rule as well as the final rule’s validity.

It is important to note that the courts’ injunction is only temporary and the final outcome will depend upon several issues. For now, everything is up in the air.

So, what should employers do now? The answer depends on what employers were already planning to do and how far along those plans are. Were salaries going to be increased? Has that already been conveyed to the affected employees? Were potential misclassifications converted? A balance between business needs, including implementation costs incurred thus far, reversal costs, and employee morale will need to be taken into consideration. Regardless of where an employer is in the process, it should seek legal guidance as to what its current options are, and how to ultimately communicate those options to its employees.

Your Culhane Meadows, PLLC, Labor and Employment Practice Group stands ready to assist you in this ever-changing process. Feel free to contact Terese Connolly (tconnolly@culhane.law), Harve Linder (hlinder@culhane.law), or Jennifer Rodriguez (jrodriguez@culhane.law) for further guidance.

This Blog/Web Site is made available by Culhane Meadows PLLC and its attorneys for educational purposes only and to provide general information about the law—not to provide you specific legal advice. By using this Blog/Web Site you understand that there is no attorney client relationship between you and any Culhane Meadows attorney. This Blog/Web Site should not be used or relied upon as a substitute for competent legal advice from a licensed professional attorney in your jurisdiction. Also, please note that although this Blog/Web Site is made available on the Internet, Culhane Meadows attorneys do not seek to practice law in any jurisdiction in which they are not properly authorized to do so.