Undoing Overtime Pay Changes Could Be Tricky
Regardless of the future legal status of the DOL regulations, the changes may end up becoming fixed in many organizations simply because many employers are uncomfortable walking them back for fear of damaging employee morale and engagement.
Some employers may hold off on, or roll back, changes to comply with the new rules.
When a federal judge in Texas placed an injunction on the new Department of Labor (DOL) overtime regulations, the action threw an untimely wrench into employers' months-long efforts to comply with the new rules—leaving many in a difficult and confusing position.
The Justice Department appealed the injunction on Dec. 1, but many believe the Trump administration is unlikely to pursue the appeal.
The DOL regulations, among other things, would have raised the salary threshold for exempt employees from $23,660 to $47,476 with increasing adjustments every three years. Employers most affected are those that had already begun making changes and, more importantly, communicating those changes to employees.
Unless exempt, employees covered by the Fair Labor Standards Act must receive at least time and one-half their regular pay rate for all hours work over 40 in a workweek.