BREAKING NEWS--- 11.22.2016
On November 22, a federal judge put a temporary injunction on the FLSA Overtime Rule scheduled to go into effect on December 1. What does this mean?
For now, the overtime rule will not take
effect as planned Dec. 1, but it could still be implemented later down the
road. Employers may continue to follow the existing overtime regulations until
a decision is reached.
A preliminary injunction isn’t permanent, it simply preserves the
existing overtime rule.
Employers will likely want
to leave decisions in place if they have already provided salary increases to
employees in order to maintain their exempt status.
If there are exempt employees who were going
to be reclassified to nonexempt, but haven’t been reclassified yet, employers may want to postpone those decisions and give the litigation a
chance to play out.
Employers should not assume, however, that the
overtime rule will be permanently barred. They should still have a plan to move
forward if necessary in the future.