Update: Overtime Exemptions Final Rule (Video)


So December 1, 2016 came and went. And guess what employers around the country did not do? You guessed it. They did not implement the new rules governing overtime exemptions.

Why not? Is the whole country suddenly non-compliant? No, of course not. You know better than that. What did happen is in November a judge in Texas put an injunction on the final rules implementation date.

What that means is it temporarily blocked employers from being required to implement come December 1, 2016. So what now? Well, of course DOL has said we are going to appeal this ruling and hope to get it passed with a new implementation date coming.

Is that going to happen? We really can’t say. We know that the appeals have all got to be in with all of the arguments and documentation no later than the end of January. And then, we’ve been sort of promised that this process is going to be expedited so that hopefully employers will have an answer by the end of February with a new implementation date or a completely scrapped program.

So what’s an employer to do? Did you implement the final rule in November before the injunction was issued? Did you go through and reclassify workers and possibly double the pay of some of your employees? If you did, well, way to go for working hard to be compliant.

And if you did, I’m really sorry because that presents you with quite a dilemma. My suggestion, and the suggestion of many attorneys around the nation is sit tight. Wait until we have a final determination on this legislation.

If it turns out that the whole program is scrapped, then you have some decision making to do. But no matter how you slice it, it would be really difficult to go back to an employee that you’ve raised from, let’s say, $500 a week to $913 a week and say, oops just kidding and take that money back. That would be really difficult.
So think your options through very carefully, and hang on, crunch your numbers, wait for the end of February. Until next time, I’m Lisa Smith. Remember, you can’t be audit proof but you can audit secure.


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