KEYC - DOL's Overtime Rule Put On Hold

DOL's Overtime Rule Put On Hold

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The Department of Labor's new overtime rule set to go into effect Thursday has been put on hold.

The new rule would have doubled the salary requirement for certain exempt workers, primarily executives and administrators.

Regulation has been suspended after the Federal District Court in Texas issued a nationwide injunction, meaning at this point, employers do not need to comply with the new rule.

"If employers haven't made those changes, they got a little bit of an early Christmas gift in the sense that they don't have to adjust their budgets significantly around those exemption changes. That still may come, there still may be those changes, but I think that's a ways down the road at this point," said Blethen, Gage & Krause Partner Julia Corbett.

This new rule was a push by the Obama administration, but with a new president soon entering into office, the rule may be likely to change.

Corbett explained, "Since the President–elect is Republican and the House and Senate are now going to be Republican–controlled and this really was a Democratic, Obama Administration change, this gives the Trump Administration time to review the rule making power of the Department of Labor and time to look over this rule and perhaps stop it completely."

Moving forward, employers will need to keep an eye on legislation as it proceeds through the Court process.

--KEYC News 12