As a reminder, new federal overtime regulations under the Fair Labor Standards Act (“FLSA”) are still slated to take effect on December 1, 2016. Among other changes, the new regulations raise the minimum salary for exempt employees from $23,660 to $47,476. For an overview of the new requirements, please see our newsletter from earlier this year:
We are fielding many questions from clients about the ongoing battles – both in Congress and in court – to delay the effective date of the regulations. The House passed a bill delaying the effective date from December 1, 2016 to June 1, 2017. However, the Senate has yet to act and President Obama could veto it. Yesterday, on November 16, a Federal Court in Texas held a hearing on whether to grant a preliminary injunction preventing the regulations from going into effect on December 1. The Judge has stated that he will issue his ruling by next Tuesday, November 22. Finally, there is a chance that the Trump administration will either repeal or revise the regulations, although if they do go into effect, experts generally agree that there is little chance of any repeal or revision occurring for at least several months.
For now, we are recommending that our clients continue to prepare for the new regulations to take effect on December 1. We will endeavor to inform you of any additional developments as we learn of them.
As always, please feel free to contact us if you have any questions about how these changes affect your work force or need assistance in implementing these changes.