Alert: Final Overtime Rule Deadline Suspended
The Department of Labor's (DOL) final overtime rule has been suspended and changes will NOT likely take effect on December 1, 2016. A temporary injunction was granted on November 22, 2016, with no timeline for resolution at this point. We are keeping a close eye on developments and will provide updates as information is released.
This is a preliminary injunction, which means the impending changes to the Fair Labor Standards Act (FLSA) are NOT overturned — they are delayed indefinitely. As you decide on your approach, whether it be to hold off on making changes, reverse changes you have already made, etc., be sure to consider the potential impact to your business and employees. Additional details are provided by Society for Human Resources management (SHRM) in their article, "Federal Judge Halts Overtime Rule."
On May 18, 2016, the DOL released the final ruling governing overtime exemptions under the FLSA. The final rule includes a significant increase to the salary threshold for exempt employees and automatic increases in the future. These changes were expected to present considerable challenges to employees and employers.
CLA hosted a webinar in June diving into the regulations and their potential impact on organizations. We will continue to watch for updates on this issue. You should consult with a labor attorney for further advice.
The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting, or tax advice or opinion provided by CliftonLarsonAllen LLP to the user. The user also is cautioned that this material may not be applicable to, or suitable for, the user’s specific circumstances or needs. The user should contact an experienced labor lawyer prior to taking any action based upon this information. CliftonLarsonAllen LLP assumes no obligation to inform the user of any changes in laws or other factors that could affect the information contained herein.