The Department of Labor’s (DOL) new overtime rule is scheduled to go into effect on December 1, 2016. The DOL’s rule raises the minimum salary an employee has to earn in order to qualify for being overtime exempt under the Fair Labor Standards Act from $455 per week to $913 per week.
With less than 6 weeks remaining for employers to become compliant, chances for the rule to be delayed or blocked are dwindling. It is imperative that employers take steps to prepare for the December 1st effective date.
Currently, there are pending legal challenges to the rule’s implementation, including a lawsuit filed in a Texas federal court by a group of 21 states. In
mid-October, these states asked the Court for an injunction preventing the rule from taking effect; however, the Court has yet to issue a ruling.
In addition, the House of Representatives passed a bill (H.R. 6094) in late September seeking to delay the rule’s implementation by 6 months, but even if the bill reaches the Senate floor when it convenes next month, President Obama has stated he will veto it.
While MBA will immediately inform you of any successful challenges to the rule’s implementation, we are here in the meantime to help your business prepare for the change and assist with compliance. Please review this fact sheet, which explains both the pending changes and our proprietary online overtime analytics tool.
If you would like to review how these changes will impact your business, please contact your MBA Client Service Representative, at ClientServiceRequest@MBAhro.com or 888-622-6460.
For additional information, view MBA’s on-demand webinar: