LEGAL ALERT: Federal Judge Blocks Overtime Rules

10 days before the implementation date, a federal judge in Texas suspends the Department of Labor’s (DOL's) new federal overtime rules.

The overtime rule was scheduled to take effect December 1, 2016 and would have raised the salary threshold from $23,660 to $47,476 annually. The rule also provided for adjustments based on the 40th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census region.

What’s Next?

For now, the overtime rule will not take effect as planned December 1st, but it could still be implemented later down the road. Employers may continue to follow the existing overtime regulations until a decision is reached. It is important to know, the DOL released a statement confirming they will likely challenge the decision.

HR’s Role

Many employers have already taken action and either raised exempt employees’ salaries to meet the new threshold or reclassified employees who are still earning less to nonexempt status.

Employers will likely want to leave decisions in place if they have already provided salary increases to employees in order to maintain their exempt status. Reversing salary increases or reclassifying employees again could be risky for employers.

Employers may want to hold off on reclassifying exempt employees to nonexempt until a final ruling is made.

Employers shouldn’t assume, however, that the overtime rule will be permanently barred. You should still have a plan to move forward if necessary in the future.

Confused? Frustrated? Concerned? Give us a call and we'll chat about it!

We The People Consulting Published in Indian Gaming Magazine

We are thrilled and honored to have been published in the October 2016, G2E Show Issue of Indian Gaming Magazine: "The National Magazine Of The American Indian Gaming Industry." 

We The People Consulting was selected to submit an article covering the Department of Labor's (DOL's) new overtime rules, which take effect December 1, 2016. 

The new rules are complex and require a significant amount of footwork and organizational analysis. I would encourage businesses to get a jump start on this process as the December 1st deadline is fast approaching. 

Not all businesses have the time, resources, or expertise. We recognize that some businesses operate with a lean Human Resources staff, or with a staff lacking the expertise these new rules require. If you find yourself in either position, please don't hesitate to contact us. We know what needs to be done, and we know how to get it done. Don't go at this alone. Give us a call. We will get you there.  

Ready Or Not! The DOL's New Overtime Rules

This week, We The People Consulting hosted a series of webinars covering the Department of Labor's (DOL's) new overtime rules. We discussed the implications of the new rules, provided a HR checklist, talked about policy and procedure, and even provided examples on 'how to' calculate the impact. 

We had very good attendance and an inquisitive audience, which in our minds equals a successful and meaningful webinar! 

A big Thanks to all that attended. So that the message remains fresh and consistent, we have included the presentation below. To access, please click "OIGA DOL Webinar." 

As always, we encourage questions so please do not hesitate to reach out to us. We are here to help!