Here’s What You Need to Know
Hot off the press! In an unexpected plot twist, the new FLSA overtime regulations, which were set to increase the exempt salary threshold to $47,476, have been temporarily suspended by Judge Amos L. Mazzant, III.
The ruling, which was seen as unlikely by many legal professionals, comes just days before the December 1 deadline. A total of 21 states backed the lawsuit.
What does all of this mean for you as a business owner?
Here’s your key takeaways:
- This injunction is temporary. The new overtime regulations haven’t been discarded. But their implementation has been suspended until their legality can be determined.
- December 1 is no longer the deadline for implementing the new salary threshold.
- As for what happens next, the court will hold hearings to determine whether or not the DOL had the authority to make the new rules.
- At the conclusion of the hearings, the new overtime rules will either be discarded or take effect.
- If your employees are among the 8 million the DOL currently considers to be misclassified, you’re still vulnerable to FLSA wage and hour lawsuits.
So, what should you do with this reprieve?
Think of it this way: If you have employees who are misclassified, you’re effectively playing Russian roulette… right now! A stay in the new overtime regulations simply means that the government isn’t intervening (yet) to insist that you take your finger off the trigger.