The Overtime Rule: What Now?

As we all know by now, on November 22, 2016, Judge Amos Mazzant of the federal U.S. District Court for the Eastern District of Texas enjoined the U.S. Department of Labor’s overtime rule, thereby preventing it from taking effect on December 1, as scheduled.

The preliminary injunction may be overturned, and it is unclear whether the issuance of the preliminary injunction limits liability between December 1 and the date of reversal, if any. In the interim, employers may want to consider limiting hours worked or tracking hours worked for affected employees.

The ruling is a blessing for some members and a massive inconvenience for others. While the nation waits for a final resolution to the issue—which could take months—MSEC has assembled the following information to help employers navigate the uncertainty.

Steps for Employers:

Communicate that the U.S. Department of Labor’s new minimum salary increase for employees exempt from overtime, which was set to take effect on December 1, has been placed on hold. Inform employees that while the increase may eventually take effect, the company does not know when that will be or whether the original components of the rule will change. Add that the company will continue to monitor developments and report to employees as information becomes available. Utah law requires employers to notify employees of any change to an employee’s wages or benefits prior to the time of the change.table-f1