On November 22, 2016, U.S. District Court Judge Amos Mazzant III issued a preliminary injunction temporarily blocking the Department of Labor (DOL) from implementing revised white collar overtime exemptions. The regulatory revisions, which would have become effective December 1, 2016, would have doubled to $47,476 the salary threshold for exemption from overtime pay.
What does this mean for you?
Although the injunction halts the revised regulations from becoming effective on December 1, it is a preliminary injunction, rather than a permanent decision.
1) If you have not made any changes, then maintain status quo, and be aware that you may be required to make changes in the future. Staff One will keep you informed.
2) If you have already changed an Exempt employee to a Non-Exempt hourly position, then you may elect to change their status back to Exempt. However, state laws governing employee notification may exist, so please work with your Staff One HR Manager on notification of changes to status.
3) If you raised an employee’s salary to exceed the threshold, you will need to decide if it makes sense to have a discussion with the employee and change the pay rate back. Again, some state and federal laws require notice before making changes to status or pay, so please work with your Staff One HR Manager on notification.
Staff One will keep you informed as the situation develops. There will be a decision issued at a later date on the actual merits of the case, so changes in the FLSA salary threshold for exemption may be back.
Note: If an employee’s status was changed from Exempt to Non-Exempt based on duties test failure, it is important not to change the employee’s status back to Exempt, because that decision was made independent of the minimum salary question.
How We Help
Staff One keeps clients up-to-date about changes in employment-related laws and regulations, as well as providing guidance on Exempt/Non-Exempt status for employees. If you have questions about timekeeping issues, calculation of overtime wages, or other HR issues, please call your HR Manager directly or email Director of HR Services Anissa Wilson, PHR, SHRM-CP at firstname.lastname@example.org.