The New FLSA Overtime Rule Was Just Suspended

Published

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:

  1. This injunction is temporary. The new overtime regulations haven’t been discarded. But their implementation has been suspended until their legality can be determined.
  2. December 1 is no longer the deadline for implementing the new salary threshold.
  3. 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.
  4. At the conclusion of the hearings, the new overtime rules will either be discarded or take effect.
  5. 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.

Either way, FLSA violations like employee misclassification and mishandling of overtime is a dangerous game.

7-deadly-sins-tile

Read more about the seven most common FLSA violations many business owners are committing right now.