December 1, 2016 FLSA Overtime Changes on Hold

November 23, 2016|Thomas Schultz

Updates to the Fair Labor Standards Act (FLSA) overtime rules were placed on hold by a Texas federal judge Tuesday, November 22. This decision was a result of the 21-state lawsuit filed in October. His ruling effectively places on hold, the updates set for implementation on December 1. The changes would have raised the salary threshold for the overtime exemption.

At this point, the rule will not take effect on December 1; however, employers should understand that the changes could still be enacted in the coming months. The DOL would be expected to challenge the ruling.

Many employers have communicated with employees impacted by these pending changes. You will have to evaluate your options given this unexpected ruling. Decisions based on a belief that the overtime rule changes are permanently stayed are not advised.

Your options may include:

  • Leave any decisions in place if actions to maintain the exempt status were already taken.
  • Delay decisions to reclassify exempt employees to nonexempt.

Additional information and background on the changes:

Federal Judge Halts Overtime Rule

Preliminary MEMORANDUM OPINION AND ORDER Granting the Injunction

For assistance with human resources needs related to FLSA overtime rule compliance, contact Thomas Schultz, PHR, or any member of Schenck’s Human Resources Consulting team at 800-236-2246.  

Thomas Schultz, PHR, is a manager – HR Consulting with Schenck. He has more than 20 years of human resources experience, including building human resource systems and structures that match the changing needs of businesses. He brings a broad blend of skills in areas such as leadership coaching, employee relations, benefits, training and development, change leadership and employment law.