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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 extending overtime benefits to employees who 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 minimum salary level for employees who are exempt from receiving overtime pay from $455 per week ($23,660 per year) to $913 per week ($47,476 per year). This would have extended overtime protection to millions of workers not currently eligible for overtime pay under federal law. 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 from overtime protection and making changes accordingly to remain compliant. 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.

Update - 8/31/17: Overtime rule struck down
After an ongoing review of the new overtime rule originally postponed in November 2016, a federal judge has made a final decision to strike down the proposed law. Therefore, organizations including Church Mutual policyholders will not be affected by changes to the existing overtime requirements.

Employers should continue to evaluate the status of employee positions to ensure they remain compliant with any current or future laws. For more information, visit Christianity Today - Churches No Longer Face Overtime Pay Increase

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