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Judge Halts Department of Labor’s Overtime Regulation – What You Need to Know

Judge Halts Department of Labor’s Overtime Regulation – What You Need to Know

A Texas federal judge has blocked the Department of Labor from implementing the new overtime provisions. They are no longer set to take effect December 1, 2016.

The Judge placed a nationwide injunction stopping the law, meaning the provisions will not take effect while a final ruling is decided. The Overtime Law may still take effect, only not on the original date of December 1, 2016.

Why the Injunction?

The Texas judge ruled that the DOL didn’t have the authority to raise the minimum salary threshold, that this action should be taken by Congress.

What does this mean for my organization?

This could mean that your exempt employees who may have needed to be reclassified due to not meeting the salary threshold under the new regulations may be able to stay exempt if they meet the other classification requirements – for now. The next steps are uncertain, and this doesn’t necessarily mean that the rule will be permanently overturned.

We’ve been communicating this change to our employees for months – what now?

It’s important to keep employees and their managers in the know about what’s going on. Letting employees and managers know that the rule has been blocked and is pending further ruling is a great first step. It’s also important to be prepared to answer the “Why?” question, since some employees may have been anticipating a bump in pay due to overtime.

What do I tell the senior executives in my company?

It’s important for senior leaders to understand that while the judge’s ruling temporarily blocks enforcement of the rule, we will have to wait to see what happens at this point. Organizations should still be prepared to re-classify their workforce if needed, however, the compliance date would be later than December 1st at this point.

I have questions! Who can I reach out to?

You should always reach out to your employment law attorney for additional information. You can also reach out to livingHR – we are staying on top of the regulation changes as they unfold, and our team is always ready to help you with your communication and change management strategies.

livingHR’s team of compensation, compliance, total rewards, and cultural experts are here to help! We understand you may have already implemented changes and we can help review current structures, create clear communication plans for your employees, and help keep managers and employees up-to-date on the new regulations.

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