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Compliance Update:
  

November 2016






Next week's implementation of the overtime rule has been suspended.
Overtime Rule Suspended
A US District Judge has issued an emergency injunction to block the overtime rule change slated to take effect December 1, 2016.
 
The new rule would have more than doubled  the national salary threshold for workers to qualify as exempt from overtime pay requirements. The effect of the change would be that most businesses, governmental entities and many nonprofit organizations would be required to pay time-and-a-half for hours worked over 40 in a week by those workers making $47,476 or less per year.
Judge Mazzant agreed with 21 states and a coalition of business groups, including the U.S. Chamber of Commerce and Plano Chamber of Commerce that the rule is unlawful. In his 20-page opinion, Mazzant, said the rule improperly created a salary test for determining which workers fall under the Fair Labor Standards Act's so-called "white collar" exemption.
 
We don't know if the decision will be appealed or the rule amended or what the Trump Administration's stance may be.
 
Stay tuned we are sure they'll be more information to follow.

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This update is a publication of TBR Associates, designed to highlight employee benefit matters of interest to our readers.  The information contained in this publication is meant for general educational purposes only.