HR Compliance Update: New Overtime Rules Halted

Within nearly one week until December 01, 2016, the date in which the new Fair Labor Standards Act (FLSA) overtime regulations were scheduled to take effect, a Texas federal judge has the new overtime regulations on hold. Does this mean the new overtime regulations are out and won't ever go into effect? No, not necessarily.

So what does this mean for employers? Simply stated, this means employers are not required for the time being, and until further notice and mandate from the government, to adhere to the new overtime regulations effective December 01, 2016, which requires an increase in the minimum salary threshold, going from $23,660/year up to $47,476/year for a job function to be Exempt from overtime.

Employers can continue to administer their compensation and FLSA classification practices as they have been doing and in accordance with the current FLSA overtime reguluations, pending further notice and mandate from the government. However, for those employers who have already communicated to employees a change in their respective compensation as part of the new overtime regulations, it's recommended as good practice to maintain what has already been communicated to the employee(s).

Still have questions? Check out this link below from SHRM, the Society for Human Resource Management.

FLSA New Overtime Laws Halted