As many of you know, new regulations promulgated by the Department of Labor which would have raised the salary threshold for overtime pay from just around $24,000 to $47,476 per year (i.e., cause employees making less than $47,476 to no longer be exempt from overtime laws) were set to go into effect on December 1, 2016. However, yesterday a nationwide injunction was issued by a federal court blocking the implementation of those new regulations.
WHAT DOES THIS MEAN FOR EMPLOYERS?
The chances for the new rules to be implemented at some point in the future are murky at best. However, employers should still act cautiously. Employers that have already communicated changes in salary or classification to their employees in anticipation of the new regulations might find it difficult to reverse course without jeopardizing employee relations. Employers who have not yet made or communicated any changes should consider delaying implementation until the DOL, and the courts, take further action. If any further action is taken, we will immediately notify you, as employers throughout the nation await additional rulings.
If you have any questions about this or any other labor/employment issue, please feel free to reach out to your firm contact or Brett J. Schneider (bschneider@wsh-law.com) or Michael S. Kantor (mkantor@wsh-law.com) at (954) 763-4242.
