When a Texas Judge issued a stay of execution on the new overtime rule, employers’ reactions were mixed. So what’s happening with overtime rules now?
For employers who had not mentioned any changes on classification and overtime rules, the decision by the Texas judge injunction justified their “wait-and-see” approach. Many others had already announced to employees plans to adjust salaries as of December 1st to comply with the anticipated change in overtime rules.
Rather than roll back salary increases for exempt employees, employers are complying with the new rules as written, despite the legal challenges.
The Department of Labor (DOL) under President Trump may withdraw the Obama DOL’s appeal against the judge’s decision and let the judicial process follow its slow course.
This would be consistent with the President Trumps frequent comments that the government must reduce business regulations to promote a free market. Trump has also advocated for a small-business exemption to overtime requirements.
Most people agree there needs to be an increase in the exempt salary level currently at $23,660. However, many small employers and non-profit organizations found the overnight doubling of this salary threshold to $47,476 to be “too much too fast.”
The DOL might consider modified overtime rules for small businesses, non-profits, and rural areas. DOL rulemaking would take a while (as in several years) if the previous rulemaking is any indication.
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