Beginning December 1, 2016, any employee paid less than $913.00 per week will not be capable of qualifying for the exemptions from overtime known as the “white collar exemptions.” According to the Department of Labor, this change will result in an estimated 4.2 million additional employees becoming eligible for overtime. You can read more about this change here.
Not surprisingly, action is underway to stop the implementation, including a September 20th suit brought by 21 states against the federal government to block the new overtime rule and declare it unlawful. According to these 21 states, the final rule threatens their budgets, represents an encroachment upon the rights of states, and violates the 10th Amendment. The 21 states named as plaintiffs in the suit are: Nevada, Texas, Alabama, Arizona, Arkansas, Georgia, Indiana, Kansas, Louisiana, Nebraska, Ohio, Oklahoma, South Carolina, Utah, Wisconsin, Kentucky, Iowa, Maine, New Mexico, Mississippi, and Michigan.
Also, on September 28, the United States House of Representatives passed a measure that would delay implementation of the new rule by six months. The following day, lawmakers introduced a bill that would phase implementation of the new rule across five years and would require an “independent government watchdog” to study the new rule after its first year of implementation.
If you have any questions about this proposed law or any other employment issue, please feel free to contact us. Click here to register for our Labor Law Seminar where we will be discussing the new DOL rule and strategies to minimize its impact.