Will Changes to the Overtime Rules Impact Your Workplace for the Better or Worse?

Written by on 1/23/2017 3:00 AM in , , , , . It has 1 Comments.


Employee management tips can be hard to implement when you don’t know whether certain legislation is coming or going. At the end of November, a federal judge blocked an Obama executive order that attempted to extend overtime pay to more than 4 million salaried workers. With a possible appeal by his Department of Labor sure to follow – and newly-elected President Trump waiting in the wings – it’s anyone’s guess whether the order will become law.

The proposed plan:
President Obama’s Labor Administration rule was to take effect December 1st, effectively doubling the salary cap a worker can earn and remain eligible for mandatory overtime - up to a $47,500 maximum. If passed, it would have been the first significant change in decades, touching nearly every sector of the U.S. economy.

The block:
Twenty-one states and a coalition of business groups, including the U.S. Chamber of Commerce, filed a motion claiming the rule was unlawful. U.S. District Court Judge Amos Mazzant agreed, ruling the federal law governing overtime does not allow the Labor Department to decide which workers are eligible based on salary alone.

Citing The Fair Labor Standards Act, employees can be exempt from overtime if they perform executive, administrative or professional duties. The judge thus granted their motion for a nationwide injunction.

Stalled out
The Labor Department disagrees, maintaining the entire rule is legal, and continues to weigh its options. Specifically: Whether to appeal a motion that could ultimately be undone by President Trump after his inauguration.

Business legislation upheaval giving you a post-election headache? Minnesota Comp Advisor has the news, tools, and employee management tips to help you survive. Contact us today.

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