Last week, a Federal court issued a nationwide injunction against the overtime rule that was set to take effect on December 1, 2016. This injunction came as a surprise to most Lawyers and HR practitioners. Most employers already had a plan in place for changes to be made or had implemented changes to be in compliance.
What happens next?
The Department of Labor may choose to contest this decision. With the upcoming change in administrations, the DOL may decide not to contest the decision. Until further notice, employers must continue to comply with the existing overtime guidelines and exemption rules.
What do employers who haven’t taken action need to do?
Employers planning to make changes to employees’ pay or status, to be in compliance with the new salary requirement, should still complete the FLSA duties testing to ensure compliance with existing regulations.
If the position meets the job duties requirements, the position remains Exempt.
If the position doesn’t meet the FLSA duties test, regardless of salary, the position should be classified as Non-exempt.
What if changes were already made?
Develop a communication strategy to support the action you plan to take. Make sure employees understand the last minute changes and how it impacts their position.
If you have questions about FLSA status or communication of the overtime rules to employees, please contact us at hrsupport@thehrsolutionsgroup.com.