On November 22, 2016, an injunction was issued that temporarily blocked previously mandated changes to the overtime pay regulations under the Fair Labor Standards Act (FLSA). This block temporarily delays changes set to go into effect on December 1, 2016 (see article “Do You Know the Overtime Pay Rules Under the New Fair Labor Standards Act”).
The court’s action stops the nationwide overtime rule changes from going into effect while the court decides the case. The delay is temporary while the case continues to be litigated. Under discussion is whether the Department of Labor had the authority to make the FLSA changes and whether the FLSA changes are valid. The delay applies to employers nationwide.
What is the next step?
Employers will need to pay close attention to this case as it continues through the system.
Many employers have already taken steps to meet the December 1, 2016 deadline. They will have to make decisions as to whether any planned changes will still be implemented or if they will be put on hold while the case is litigated. Employers need to communicate with their employees if previously discussed pay changes will not be implemented. It may be best to consult with your attorney if sudden changes to employees’ compensation are needed.
Employers should take this additional time to continue to review job duties and descriptions to ensure that employees are properly classified and that they are in compliance with all current FLSA regulations.
Disclaimer: this information is provided for general information purposes only. This information does not constitute legal, tax or any other form of professional advice. Before making any decisions or taking any actions, you should consult with your appropriate advisor who has been made aware of the facts and pertinent information regarding your situation.