Short of a successful (but highly unlikely) appeal, the Obama-era overtime rule is now officially no longer.  That rule would have required employers to pay employees a little more than $47,000 annually to qualify under one of the Fair Labor Standards Act’s white collar exemptions.  The rule was already in limbo when a Texas Federal district court judge temporarily prevented its enforcement just before Thanksgiving last year, and now that same judge has struck down the rule permanently just before another major American holiday.

 

Continue Reading Employers Receive Important Overtime Law News Just Before Labor Day

As all HR professionals and employment lawyers know (even those currently living under rocks), the Department of Labor’s final overtime rule is scheduled to go into effect on December 1, 2016 – less than two weeks from now.  The DOL published the rule back on May 18, 2016 providing employers with nearly 200 days to come into compliance.  Many have planned accordingly and are ready to go; others are finally focusing on this issue as the deadline nears.  At the same time, questions continue to arise over the rule’s fate.  In this post, we discuss the current state of play along with some compliance tips for employers.

Continue Reading Uncertainty Continues to Swirl Around DOL’s Overtime Rule as Employers Make Compliance Push

One of the few “wins” for employers under the DOL’s new overtime rule was that employers are now allowed to apply “nondiscretionary incentive payments” to meet up to 10 percent of the new salary threshold.  This change could prove very important for employers who pay employees on a commission basis or who use other incentive-based compensation.

But what qualifies as a nondiscretionary incentive payment?  What options do employers have in changing their compensation plans to ensure compliance with the new rule?  And what could be the unintended consequences of those changes?  This post looks at this new rule and attempts to answer some of those questions.

Continue Reading Handling Nondiscretionary Incentive Payments Under the New FLSA Overtime Rule

As has been widely reported, President Obama has ordered the US Department of Labor to updated existing federal regulations on overtime in order to account for the changing nature of the workplace and to allow both workers and businesses to better understand and apply the exemptions..  Reports have centered on the expectation that the updated regulations will, in part, increase the salary basis requirement, which will in effect allow millions of workers to qualify for time and half pay for the first time.  Today, only 12% of salaried workers fall below the current threshold whereas it was as high as 65% back in 1975.

The administration had signaled that the proposed regulations would be ready in February.  That obviously hasn’t happened.  And just to give you a quick update, we have now learned that the administration has first submitted its proposed regulations to the Office of Management and Budget for review.  That Office typically has 90 days in which to review a proposed regulation, and it is also permitted one 30-day extension.  So it could be some time before the administration releases the proposed regulations to the public.  But they are coming and we will certainly let you know when they do.