Last week a federal judge blocked the implementation of the Department of Labor’s new overtime rule. Originally slated to take effect on December 1st, the rule would have raised the salary threshold from $23,660 to $47,476 for approximately four million workers.
Twenty-one states had filed a motion for a preliminary injunction last month to suspend the rule from taking effect. A hearing on November 16th allowed these states to present their case, stating that the DOL would exceed its authority in setting the salary threshold at its new point as well as providing for triannual adjustments to the threshold.
Though the overtime change will no longer begin next week, there is a chance that it could still be implemented under the new presidential administration. Employers who have already reclassified employees or raised the salaries of exempt employees to meet the threshold may choose to leave the changes in place. However, all other employers should continue to adhere to existing overtime regulations until further notice.
You can rely on Valiant to keep you informed and compliant regarding current and upcoming regulations. In addition to our software, we provide expert guidance for the hourly workforce, large or small. Contact us today to discuss how we can help streamline your payroll process.