FLSA Overtime Rules Halted from Taking Effect on 12/1/2016; Future Uncertain
A federal judge issued a preliminary injunction late yesterday, November 22, 2016, which prevents the U.S. Department of Labor’s (USDOL) overtime rule from taking effect on December 1, 2016.
The fate of the overtime rules is now uncertain.
It is possible the federal judge may be swayed by USDOL arguments or that an appeals court could reverse the course in the next several weeks. It is also quite possible the rules will be further delayed, completely overhauled, or altogether scrapped once President Trump takes office on January 20, 2017.
Additionally, a series of measures have been introduced in Congress hoping to prevent or stall the rule changes. While one of the proposed legislation changes would scrap the increases altogether, another proposed change would delay implementation to provide a longer period of preparation. Still another, would push the effective date for the full increase to 2019, instituting gradual increases on an annual basis for the next three years.
Hold steady on your actions—continue to be compliant or be ready to act quickly.
Experts agree that modification to the FLSA salary thresholds will come to fruition. As we’ve seen with this unexpected injunction, dates and rules can change abruptly. Extensis is advising clients to maintain their compliance measures.
We are monitoring the situation and will notify our partners immediately of any developments.
We are tracking these developments daily, and will provide updates and recommended actions. In the meantime, if you have any questions or concerns, please contact the HRA Hotline at 877-773-8770, or send an email to email@example.com