New Overtime Rule Blocked. So What Now?

The new overtime rule for exempt (salaried) employees was scheduled for implementation on December 1, 2016.  This rule would have required employers to pay time and a half to their exempt employees who worked more than 40 hours a week and earned less than $47,476 a year.  A federal judge recently blocked the rule that would have extended overtime eligibility to some 4 million Americans.  U.S. District Judge Amos Mazzant III issued a preliminary injunction, siding with plaintiffs who said the new overtime rules would have made it mandatory to pay millions in additional salaries and would have eventually led to layoffs.

The Obama administration challenged the federal judge’s decision, filing a notice of appeal at the U.S. District Court for the Eastern District.

So, what now?  At this time, employers need not implement changes by the December 1 deadlines.  When implementing any change, consider the level of disruption for the workplace.
1)    If you have not implemented the rate change, consider postponing the change.
2)    If you have already raised the salaries of your exempt employees, you may want to keep those salaries in place.

Look out for updates on the overtime rule injunction by visiting our website at http://www.phrsguam.com.

Grace Donaldson is the COO/General Manager of Pacific Human Resource Services, providing training, HR consulting, recruitment and staffing, and drug testing services.   PHRS may be contacted by phone: 671-637-6906 or email: info@phrsguam.com or visit its website: http://www.phrsguam.com

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