Last May the U.S. Department of Labor (DOL) announced they would be changing overtime regulations effective December 1, 2016. They reasoned that because exempt salary levels for Executive, Administrative and Professional employees had not changed since 2004, an increase in salaries was justified. Their recommendation more than doubled current starting salaries, from $23,660 to $47,476 annually.
The news sent employers scrambling to evaluate employee classifications and pay levels. Twenty-one states and numerous business groups filed suit in an effort to stop implementation of the new rule. On November 22, 2016, a federal judge issued a preliminary injunction that blocked implementation of the rule just days before it was set to take effect.
With the new administration in Washington, it is unclear what direction this new ruling will take. The DOL is appealing the preliminary injunction but hearings won’t take place until February.
For more information about this program, contact Sara Fish at Sara.Fish@CHSInc.com.