“A federal judge on Tuesday, November 22nd, blocked a new rule making millions more Americans eligible for overtime pay, indefinitely pushing back the Dec. 1 effective date while he weighs a challenge to the requirement.
The decision by U.S. District Judge Amos Mazzant in the Eastern District of Texas to grant a preliminary injunction affects an estimated 4.2 million workers who were to be newly eligible for time-and-a-half wages for each hour they put in beyond 40 a week.
The rule, released by the Labor Department in May, would nearly double the threshold at which executive, administrative and professional employees are exempt from overtime to $47,476 from $23,660.”
USA TODAY 11.22.16 at 11:39 pm
As the above article states, the new overtime law that was to be implemented next week has been halted in the courts. You know best whether this legal hold impacts your business significantly or not. With so many unknowns we offer some things to consider…
- This could be a temporary hold and could still take place relatively soon
- This could be stalled for months or stopped permanently
- The salary limits could be changed and not be as high as the $47,476 proposed
- This could affect employee morale if you have already discussed pay increases etc.
We will do our best to keep you informed on further developments as they occur.
Willis & Jurasek