If you are late to the overtime party, it actually worked in your favor (this time at least). The new overtime law has been placed on hold for now. The law was supposed to go into effect this Thursday, December 1st. However, you can thank a Texas federal district court judge for the hold. On Tuesday, November 22nd the judge issued an injunction to prevent, or at least for now delay, the Department of Labor (DOL) from enforcing the rule on December 1st.
What does that mean?
- All businesses nationwide do not have to adhere to the proposed law that would have been in effect on Thursday.
- The law is on hold until an order is issued by the district court, or the United States Court of Appeals for the Fifth Circuit or the United States Supreme Court.
- You must watch the news closely!
- You must be prepared to make changes if and when the rule does go into effect.
What if you already made changes and communicated them to staff?
Well, you have to look at each situation. There were a few options for your business to become complaint and try to remain profitable. Here are just two examples of what to do:
- If you were just implementing the need for tracking hours, you can choose to hold off (as long as the duties and salary test meet the current standard).
- If you bumped up an employee’s salary already and they know about it, DO NOT GO BACK. DON’T BE A JERK, A SCROOGE, OR AN @$$!
Feel free to reach out to a professional if you have a particular situation you need to discuss.
Truth is, we don’t know what is going to happen and there is a ton of speculation. Be safe, have a plan, and keep your ears open.