Fair Labor Standards Act’s Revised Overtime Regulations Now on Hold

Fair Labor Standards Act’s Revised Overtime Regulations Now on Hold

My last post provided a simplified explanation of the Fair Labor Standards Act’s (FLSA) revised regulations which were set to take effect on December 1, 2016.  Well, what a difference a couple of weeks make.  On November 22, 2016, a Federal Judge in Texas ruled in favor of twenty-one states, the US Chamber of Commerce and other groups’ which challenged the US Department of Labor’s authority to make such a sweeping change, which included automatic upward adjustments to the salary threshold every three (3) years.

Although many employers, especially small businesses, are celebrating this temporary injunction, it is important to remember that it is temporary.  There is no guarantee that it will become permanent, but for now at least they can hold off on transitioning employees whose salaries are within the $23,660 current threshold to $47, 476 proposed threshold to non-exempt.

Judge Amos Mazzant, of U.S. District Court for the Eastern District of Texas issued the injunction blocking the new rules.  An article on the Society for Human Resource Management’s website, www.shrm.org, quoted Judge Mazzant as stating that the US Department of Labor “has admitted that it cannot create an evaluation ‘based on salary alone.’ ” However, “this significant increase to the salary level creates essentially a de facto salary-only test.  If Congress intended the salary requirement to supplant the duties test, then Congress—and not the department—should make that change.”

So what does this mean for the potentially affected employees, their employers, and HR professionals like myself?  The SHRM article recommends that employers who have already either raised employees’ salaries to meet the proposed new salary threshold, or reclassified formerly exempt employees to non-exempt as required by the proposed new threshold, not reverse those changes.  The article also suggests that employers who were waiting until December 1, 2016 to implement the changes hold off until a final ruling regarding the litigation is made.

For more information on this subject, visit https://www.shrm.org/ResourcesAndTools/legal-and-compliance/employment-law/Pages/judge-blocks-flsa-overtime-rule.aspx.

Author: FirstWeb

Who Is Cynthia B. Okonkwo? I am a wife and a mom who is a people person by heart. I live in metro-Atlanta and work as a Human Resources professional and have over twenty-four years experience in the field. My experience includes Compensation, Training, Recruiting, Employee Relations, Benefits, and Selection Procedure Development; however, Employee Relations is my passion because I enjoy interacting with others and helping them to solve problems. I became interested in Human Resources while on a work-study assignment during my sophomore year in undergraduate school. I chose management as my major because I was not quite certain what I wanted to do after college and I knew that an off-shoot of Business Administration was a safe, general choice that could help me get into a number of career fields. My work-study assignment was as an assistant to the campus Director of Career Services. There, I learned to make cold calls to area businesses to seek out employment opportunities for students and alumni. I also learned how to format vacancy announcements and resumes. Since writing had always been one of my strengths, I enjoyed my assignment so much that I requested to be reassigned to that department for most of the remainder of my undergraduate career. My Director also provided resources on job interview preparation and she allowed me to type resumes for students who did not have one and charge $1 per page to make a few extra bucks. I got a full-time job immediately after graduation, but it wasn’t in Human Resources; however, I had a Vice President who took me under his wings and allowed me to review employment applications for job openings at the Distribution Center where I worked, so this helped to strengthen my resume. It took me about two and a half years to secure my first full-time job in the field of human resources where I became a trained test developer for the State’s Government Merit System. From there my career has continued to grow. My blog was born out of my desire to write a book that provides practical job search tips and advice, from a spiritual, holistic perspective. After having drafted about three chapters, I got busy with grad school and obtained my MBA; got married and started a family. In 2013, I became SPHR (Sr. Professional in Human Resources) certified. I started seeing other people’s blogs, became interested and thought that blogging might be a great alternative, or spring board to completing my book, so here we are today. My sincere hope is that what I write will help someone. Enjoy!

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