941 Timekeeping
Customer Login
  • Homepage
  • Time & Attendance
    • Features
    • Solutions by Industry
      • Retail
      • Manufacturing
      • Service Organizations
      • Medical Offices
      • Restaurant and Food Industry
      • Small to Mid-Size Business
    • Electronic Timekeeping Savings Tool
  • Time Clocks
    • Mobile
    • Biometric
    • Proximity Badge
    • Online / Web-Based
    • Card Swipe or PIN Entry
    • Phone
  • Scheduling
  • Online Demonstration
    • Request a 30-Day Trial
    • Video Demonstration
  • Articles
  • Contact Us

Newly Proposed Salary Overtime Rules Put on Hold

Proposed Salary Overtime Rules Put on Hold

In May of this year the US Department of Labor proposed a final ruling to increase the minimum salary threshold for exempt employees from $23,600 to $47,476 annually or from $455 to $913 per week. As a result of the ruling, starting December 1st, exempt employees earning less than $47,476 were to become eligible for overtime pay consistent with Fair Labor Standards Act, a change that was expected to impact an estimated 4.2 million Americans.  

Preliminary Injunction – Overtime Rules on Hold 

On Tuesday, November 22nd, just days before the December 1st deadline, a federal judge in Texas issued a nationwide preliminary injunction that has delayed indefinitely the effective date of the new overtime rule.  

In addition to recent opposition from the US Chamber of Commerce and other business groups, in October, twenty-one states filed an emergency motion for the injunction. The basis of the case was that the DOL overreached beyond its authority in raising the salary threshold so high and in implementing the provision to automatically increase the threshold every three years. 

Employers – Moving Forward 

For employers, the preliminary injunction ultimately means the new overtime rule will not take effect as planned on December 1st, and that any changes made by employers to prepare for the change such as increasing salaries or reclassifying employees to hourly status should be readdressed at the employer’s discretion until a final decision is reached at a later date. Employers are not required to move forward with their proposed changes as the injunction preserves existing overtime rules until the merits of the case can be adequately reviewed. It is unclear how long the injunction will remain in place.  

Although the ruling does signal the possibility that the new overtime rules could be postponed permanently, it is also possible that the ruling could move forward at a later date or that some parts could remain in tact while others are removed.  

Employers should not assume that the delay is permanent. In response to the ruling the DOL has stated it strongly disagreed with the ruling, “delaying a fair day’s pay for a long day’s work for millions of hard-working Americans. The department’s overtime rule is the result of a comprehensive, inclusive rulemaking process, and we remain confident in the legality of all aspects of the rule. We are currently considering all of our legal options.” 

If you have additional questions regarding the proposed FLSA overtime changes or preliminary injunction, please contact 941 Timekeeping.

Contact Information

Mailing Address:
33 West 2nd Street
Moorestown, NJ 08057

Phone: 855-941-TIME (8463)
Fax: 888-991-7587
Email: sales@941timekeeping.com

Choosing a time clock for your work environment

Tracking employee time through the use of a time clock is a timeless practice. But the ability to accurately track employee time to the minute makes all the difference as it can literally amount to thousands in additional labor dollars, overtime and payroll taxes each year for employers. Time clocks have evolved enormously over the […]

Read article →

Experience Drag-and-drop Employee Scheduling Software

Creating, adjusting and managing employee work schedules is a tremendously time-intensive task. That’s no surprise to those involved in the process. Workforce planning can occupy countless hours for your key staff each pay period, including department managers and HR. For managers, the hours it takes to consider service staffing needs, employee availability, time off considerations, […]

Read article →

Close

x

Close

x
941 Timekeeping
Copyright © 2021 All Rights Reserved