Overtime Ruling Delayed

December 1st Deadline on Minimum Salary for Exempt Employees Delayed!


In case you missed it, late last month a Federal judge in Texas halted the Department of Labor’s (DOL) new overtime rule by issuing a nationwide preliminary injunction. The recent DOL’s rule requiring “white collar” employees to be paid at least $913 per week in order to remain exempt under the Fair Labor Standards Act (FLSA) will NOT go into effect on December 1, 2016, as planned.


This injunction will delay activation of the rule and the future of the overtime rule is unclear as it will now attract the attention of both executive and judicial branches. So, employers who were waiting until December 1st to implement this employee classification change may continue delaying.


Now, here’s what will happen if the injunction is lifted…per the original rules the Department of Labor (DOL) issued on New Overtime Exemption Rules.


Employee Communication

Have you been talking with your workers that will be affected? In addition to having these conversations, it is always a best practice to implement changes of classification or salary in writing to your employee.


When choosing to reclassify your employees earning less than $913 per week, you should require they track their start times, end times, break times and meal times. This is a great opportunity to ensure your employee handbook is up-to-date so your employees know what your policies are regarding meals periods, breaks and tracking their hours.


If keeping up with all these new changes prove to be an administrative nightmare, consider looking to Sequoia Personnel Services for help in monitoring rule compliance for you organization. We offer a wide variety of workplace solutions such as time and attendance options and free FLSA review. We can also create, review, or assist in the preparation of new or existing policies and handbooks.



Confused? You’re not alone! Give Michael a call at 1-707-445-9641 to connect with a member of our HR team.