Overtime Regulations Still in Limbo

The overtime regulations originally set to become effective December 1, 2016, remain in limbo. Last November, a federal judge in Texas issued a temporary injunction delaying implementation of the regulations. Attorneys for the Department of Labor promptly appealed the Texas judge’s injunction decision and requested that the appeals process be expedited.

The change in presidential administrations has brought a slowdown in the appeals process. After initial briefs were submitted in December and January, the federal government asked for multiple extensions for filing its reply brief. Most recently, on February 17, the Department of Labor’s motion asking for an additional 60-day extension to its response brief deadline was granted, pushing the new deadline out to May 1, 2017.

Although no definitive answers exist, there is some doubt whether the proposed overtime regulations will ever go into effect. At the same time, the fact that the appeal is still ongoing means the regulations could still be implemented.

What does this mean for employers both now and in the future? Unfortunately, there is still no definitive answer to that question. For the moment, the current salary basis will remain $23,660 annually. MSEC will continue to monitor the situation, as should employers. If you have any questions regarding the status of the regulations or any other wage-and-hour issues, do not hesitate to contact us for assistance.