Yesterday, a federal judge in Texas issued a temporary restraining order that blocks the Department of Labor from enforcing its new overtime rule, which was scheduled to take effect December 1. If implemented, the new rule would double the minimum base salary required for overtime exempt workers. Read more about the proposed rule here.
If your organization has not yet modified its practices to conform to the new rule, you now have the option to “wait and see,” monitoring the developments in Texas to see if the temporary order becomes a permanent order. You will need to consider the impact on morale and employee expectations if you do an about face on a planned adjustment.
If you have already implemented changes consistent with the new rule, proceed with caution before undoing them. You need to comply with state law (and collective bargaining agreements if applicable) concerning advance notice for changes in compensation.
Questions? Contact Wright Beamer at (248) 477-6300 or visit our website at www.wrightbeamer.com. And stay tuned for future developments.