Cindi Filer, CEO of Innovative Outsourcing updates you on a new court ruling that may affect you.
Over the past few months, we have been keeping you up-to-date on the December 1 implementation of the Department of Labor’s White Collar Overtime Exemption, raising the minimum annual wage (salaried or hourly) for overtime exemption to $47,400.
But it is 2016, and in keeping with the year’s theme of “expect the unexpected,” last week a federal judge blocked the rule, siding with 21 states and an organized business group, siting that the “rule is unlawful and granted their motion for a nationwide injunction,” according to Reutters.
This means that this regulation has been delayed, as the Department of Labor now files an appeal. In light of the changing political climate, even a successful appeal could be “Trumped” by new legislation, or the incoming Department of Labor may withdraw it all together.
What does this mean for you?
The December 1, 2016 implementation is no longer required, and at this moment, no one really knows what will happen.
What do we recommend?
If you have procrastinated and done nothing, this is one time that you might actually be reaping the reward. Keep an eye open for a new date and possible implementation, but this may never happen.
If you have made pay changes already in anticipation of this, you will need to make a decision to pull back or continue. Again, we have no way of knowing when (or if) this will be enacted.
Plans for tracking and reporting hours
I know that many of you have put in place a method to report hours for all employees due to this implementation. My recommendation is to keep this in place. For many reasons, it would be a good idea to have all employees report hours. It is a safeguard for you in this litigious climate. And it is also a prudent practice for your employees to view the hours they spend in an ongoing self-evaluation of their time management.
The bottom line
For many businesses like yours, this means you may have earmarked money for overtime that now can be channeled into staff expansion instead. Consider hiring a part-time employee to help ease the work load of your full-time staff. We have great talent waiting for an opportunity to bring their highly professional skills to work for you part time. Just give me a call, and we can talk about your specific needs.
So the calendar says December 1, but when it comes to raising the overtime exemption minimum compensation, it feels more like April Fools' Day instead!