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Implementation of federal overtime rules postponed

The implementation of federal overtime rules that were set to take effect nationwide on Dec. 1 have now been postponed. This means that organizations are temporarily able to delay increasing employee salaries to meet the new higher exempt salary threshold until after a hearing is held to determine if the Department of Labor exceeded its authority when the rule was issued.

The rule intended to increase the exempt employee minimum salary level from $455 per week ($23,660 per year) to $913 per week ($47,476 per year). It also included an automatic salary threshold increase every three years to maintain the minimum salary level at the 40th percentile of full-time salaried workers in the lowest wage census region. The biggest factor in this case is determining whether you have employees who are non-exempt or exempt and making changes accordingly. We will continue to monitor this ruling and keep you apprised on the situation. 

To view an article from the Department of Labor explaining more about the issue, click here.  

 

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