Revised FLSA Overtime Rule BLOCKED
The new Fair Labor Standards Act (FLSA) Overtime Law update will NOT take effect on December 1st, as originally planned. Just yesterday, a preliminary injunction was passed by a Federal Judge in Texas that put the brakes on the revised overtime rule nationwide.
For now, employers can still follow the existing overtime rule, which has been in place since 2004. This does not mean that the revision rule will never take place. This is more of a temporary hold. Employers should still have a future plan ready, if necessary.
Background: The Fair Labor Standards Act requires most employees in the USA receive pay that’s at least the federal minimum wage, and overtime to be paid for all hours over 40 in a work week (at 1.5 times the regular rate). Section 13(a)(1) of the FLSA offers an exemption from minimum wage and overtime page for administrative, professional, executive, outside sales, and certain computer employees. To qualify for this exemption, the employee must earn a minimum salary and their job duties must meet the requirements of the Department of Labor’s requirements. If the FLSA changes are passed, salaried employees paid less than the updated minimum salary would (mostly) be entitled to overtime pay, and employees that earn the updated minimum salary or more could be exempt from overtime pay, depending on their job duties.
For more information on the Fair Labor Standards Act and regulations, please visit the Department of Labor website.