The new federal overtime rule, which had been slated to go into effect yesterday as well until the judge issued the nationwide injunction, would have raised the salary threshold employees are required to meet in order to be considered exempt for overtime pay under the white collar exemptions of the Fair Labor Standards Act (FLSA), among other changes.
[For a full recap of these changes, check out our infographic: A Visual Overview of the DOL’s New Overtime Rule.]
In a statement issued by a DOL after the judge’s ruling on on Wednesday, November 23, the DOL hinted that an appeal might be on the horizon:
“The Department strongly disagrees with the decision by the court, which has the effect of delaying a fair day’s pay for a long day’s work for millions of hardworking Americans. The Department’s Overtime Final Rule is the result of a comprehensive, inclusive rule-making process, and we remain confident in the legality of all aspects of the rule. We are currently considering all of our legal options.”
The DOL’s decision to appeal the injunction means that the final rule is not dead, although it is still unclear when, or if, new regulations would go into effect. Experts are predicting that the legal process could be quite lengthy, and whatever decision is made might even end up appealed all the way to the Supreme Court. It’s also unclear how a Trump administration would choose to handle the issue, if a decision is not reached before President-elect Trump takes office, although many have speculated that he wouldn’t pursue it.
As a leading national professional employer organization (PEO) and HR outsourcing firm, G&A Partners has been helping its clients prepare for the changes to the overtime regulations for the past several months and, now, strategize on how to proceed in light of the injunction.
G&A Partners’ suggestions for employers, outlined in a previous post published in the aftermath of the injunction, remain the same even after this new development:
This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.