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Everything HR professionals need to know about the FLSA overtime exemption rule
The judge's preliminary injunction effectively halts the implementation of the new rule, which was scheduled to take effect on Dec. 1, 2016.
Meanwhile, Congressional Republicans plan for the House of Representatives to adjourn early for the year so they can buy time—until President-elect Donald Trump takes office—to try to override the new overtime regulations.
The U.S. Department of Labor (DOL) published monumental changes to the overtime rule that would make approximately 4.2 million currently exempt employees eligible for overtime pay.
The Fair Labor Standards Act (FLSA) overtime rule determines whether employees are eligible or exempt for overtime pay.
Exempt employees, because of their rate of pay and type of work that they do, are not eligible for overtime pay for hours worked over 40 in a workweek.
Nonexempt employees must be paid time and a half for any hours worked more than 40 in a workweek.
Before the Nov. 22 preliminary injunction, all employers had to comply with the changes made to the overtime regulations of the Fair Labor Standards Act by Dec. 1, 2016. That deadline has been put on hold while a federal judge reviews the case.
What Is The New FLSA Overtime Rule?
FLSA Overtime Rule News:
Overtime Rule May Still Partially ApplyThe court order blocking implementation of the new federal overtime rule’s higher salary level for the white-collar exemptions arguably does not apply to the rule's increased salary level for the highly compensated employee exemption.
What It Means For Your Organization:
The overtime rule changes might be embraced by newly nonexempt workers, while also having a significant effect upon small businesses, higher education and nonprofit organizations.
Podcast: Maury Baskin of Littler in Washington, D.C.,
Eric Meyer of Dilworth Paxson LLP in Philadelphia and
Christine Walters, of the FiveL company in Westminster, Md., discuss the reasons behind the injunction of the Labor Department's new overtime rule and what employers should do now that the courts are involved:
Download Podcast (MP3)
(Right-click the link and choose "Save Link As")
The new overtime rule would extend protections to 4.2 million U.S. workers:
What HR Professionals Need To Do:
Use these resources to help your company comply with the new overtime regulations:
SHRM Member Resources:
SHRM members receive exclusive access to templates, tools, webcasts, how-to guides and more aimed at helping HR professionals get their organizations into compliance with the new overtime regulations. Anyone who is involved in HR, supervises the HR function or otherwise has an interest in HR is
invited to join.
What Is SHRM's Stance On The Changes?
SHRM'S Action On Changes To The FLSA Overtime Rule Exemptions:
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