After preparing for six months by analyzing work schedules, reviewing budgets, and staffing requirements to comply with the new overtime requirements, a Federal Judge in Texas has placed a Temporary Injunction on the new rules.
December 1st was the date the new Department of Labor regulations were to take effect. As discussed inÂ You Have 30 Days; Are You Ready?Â the minimum earnings an employee could have to be considered salaried (exempt) was to be raised to $47,476. This was nearly double of the previous requirement.
Will the new regulation still take affect?
We don’t know. The Judge placed a Temporary Injuction on the regulations which is essentially hitting the “pause” button. This came about as 21 states have challenged the legality of the new regulation. The Judge hit the “pause” button until he could review the case, arguments presented, and make a final decision.
How long will this take?
We don’t know. It’s possible for the Judge to decide within a week, month, or more. There is no “due date” for the decision.
So, now what?
“Go”: Some companies have already implemented the new requirements, you can keep following them. Think twice before you “stop”. You need to take into consideration the effect it will have on those affected and how they will respond to you, your customers, and those around them.
“Pause”: If you were waiting until December 1st to implement and have already spoken to your team, think about what it will mean not to implement. Were some looking forward to earning the overtime, to others maybe it didn’t make a difference – where do your employees land?
“Stop”: If you were waiting until December 1st and haven’t spoken to anyone – well, there is nothing else to do.
Once the Judge decides will it be implement or “stopped”?
If the Judge lifts the injuctions and considers the regulations lawful, we will have to move forward with implementation. If the Judge decides the regulations are unlawful, it’s not over. The Department of Labor can appeal the decision. This will all be happening at about the same time the new President is sworn in and we are not sure what his stance is on this subject.
Unfortunately, we are left with more questions than answers.