Proposed FLSA Overtime Ruling Update

The new FLSA overtime rule would have taken effect December 1, 2016 and raised the white collar exemption from $455/week ($23,660/year) to $913/week ($47,476/year) and provided future adjustments to the exemption every three years.

Just days before December 1st a judge granted a preliminary injunction which froze the DOL’s implementation of the new thresholds. President Obama’s DOL was poised to appeal the injunction in hopes of implementing the rule. However, President Trump’s DOL seems to be poised not to appeal the injunction.

The Trump Administration asked for an extension to review the court proceedings and to firm up its position. They recently requested and were granted a second extension until May 1. The Administration’s actions leading to the May 1 hearing will provide insight into how the DOL will proceed.  Until then, remember that this impending regulation is still out there, and could significantly impact you.

The good news is that, if you were affected, you were already planning to comply at the end of 2016.  So, you may be able to dust off the playbook and use the policies you have already developed.*

*This is not a substitute for legal advice and should not be used as such. Do not rely on the information on this website as an alternative to legal advice from your attorney or other professional legal services provider.