Everything HR professionals need to know about the FLSA overtime exemption rule.The Department of Labor (DOL) filed a motion for an expedited briefing of its appeal of a federal judge’s decision to put the brakes on the federal overtime rule, but that shouldn’t affect what companies do.
A federal judge in Texas put the brakes on the DOL’s new federal overtime rule on Nov. 22. The rule would have doubled the Fair Labor Standard Act’s (FLSA’s) salary threshold for exemption from overtime pay.
The judge’s preliminary injunction effectively halts the implementation of the new rule, scheduled to take effect on Dec. 1, 2016. Meanwhile, Congressional Republicans plan for the House of Representatives to adjourn early for the year. So they can buy time until President-elect Donald Trump takes office to try to override the new overtime regulations.
- Federal Judge Halts Overtime Rule
- Overtime Rule Blocked: Now What?
- How to Proceed After Overtime Rule Freeze
- When Will There Be a Final Decision?
The U.S. Department of Labor published monumental changes to the overtime rule. These changes make approximately 4.2 million currently exempt employees eligible for overtime pay later this year.
The Fair Labor Standards Act (FLSA) overtime rule determines whether employees are eligible or exempt for overtime pay. Exempt employees, because of their rate of pay and type of work that they do, do not qualify for overtime pay for hours worked over 40 in a workweek. Nonexempt employees must be paid time and a half for any hours worked more than 40 in a workweek.
Before the Nov. 22 preliminary injunction, all employers had to comply with the changes made to the overtime regulations of the Fair Labor Standards Act by Dec. 1, 2016. That deadline is on hold while a federal judge reviews the case.
What Is The New FLSA Overtime Rule?
- The rule extends overtime protections to 4.2 million workers who are not currently eligible under federal law.
- Workers who do not earn at least $47,476 a year ($913 a week) will have to be paid overtime, even if they’re classified as a manager or professional.
- The Department of Labor will increase the salary threshold every three years. Based on current projections, the salary threshold is expected to rise to more than $51,000 with its first update on Jan. 1, 2020.
- Employers must comply with the new regulations by Dec. 1, 2016 (NOTE: This has been delayed as a federal judge reviews the rule).
- Full Coverage: Overtime Rule Issued; Increase Every Three Years Included
- Read the full text of the FLSA overtime rule.
FLSA Overtime Rule News:
- Congress May Use Review Act to Nullify Overtime Rule
- Congressional Republicans plan for the House of Representatives to adjourn early for the year, so they can buy time—until President-elect Donald Trump takes office—to try to override the new overtime regulations.
- DOL Seeks to Expedite Appeal of Overtime Rule Injunction
- Trump Faces Choice on Overtime Appeal
- Congress Offers More-Moderate Approaches to Raising FLSA Salary Threshold
- Federal Judge Halts Overtime Rule
- The Overtime Rule Has Been Blocked. Now What?
- HR, Legal Experts Express Mixed Reactions After Judge Blocks Overtime Rule
- What the Donald Trump Presidency Could Mean for the FLSA Overtime Rule
- Texas Judge Consolidates Challenges to Overtime Rule
- Business Groups Want Quick Decision on Overtime Rule
- 21 States File Emergency Motion to Bar FLSA Overtime Rule
- House Passes Bill to Delay Date that Overtime Rule Takes Effect
- The multiple States and Business Groups Challenge Overtime Rule
- Overtime Rule May Be Subject to Legal Challenges
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