CLIENT ALERT – OVERTIME REGULATION CHANGE HALTED (FOR NOW)

November 26, 2016

For those of you preparing to change exempt status or salaries based on the new overtime regulations, you can relax.  On November 22 a federal court in Texas granted an injunction temporarily stopping the new regulation from taking effect December 1.  Although issued in the eastern district of Texas, the injunction temporarily prevents the regulation from being enacted nationwide.  As of the time of this post, the US Department of Labor has said only that it “strongly disagrees with the decision” and “is considering all…legal options.” https://www.dol.gov/WHD/overtime/final2016/

What does this mean for employers?  At least for the time being, employers that were changing exemption status or salaries will not be required to make those changes on December 1.   Employers can maintain the status quo.  We’ll keep you posted on any legal developments affecting implementation of the new regulation.

Maintaining the status quo assumes, of course, that employers did not enter into contracts or agreements requiring the changes to be implemented.  If the changes in the overtime regulations were incorporated into a contract, employers should review the contract to determine the effect of the injunction.

Still uncertain? Contact me.

Jean Novak is co-chair of the Employer-Employee Relations Practice Group and member of the Business Services and Public and Non-Profit Practice Groups. She can be reached at 412-281-5423 or at jnovak@smgglaw.com.