Update: Proposed Changes to FLSA Overtime Rule Dismissed
Department of Labor Files Appeal in Response to Court Blocking Overtime Rule
On December 1st, the same day the updated FLSA overtime was originally set to take effect, the Department of Labor (DOL) filed an appeal with the U.S. District Court for the Eastern District of Texas in response to the temporary injunction that was issued. Had the updated overtime rules guidelines gone into effect, it would have made 4 million workers eligible for overtime pay.
The Overtime Rule Debate
There are several parties on both sides of this debate. Those who support the new overtime rule regulations say it is necessary to keep up with inflation and to help low-income workers. Those who are against the new regulations, including 21 states who filed a law suit that sparked this whole debate, argue that the new regulations (a significant increase in the salary threshold requirement - $455/week versus $913/week) would have caused an increase in government costs in their states and made it mandatory for businesses to pay millions of dollars in additional salaries.
What’s on the Horizon
It’s unclear what the future of the FLSA overtime rule will be. The DOL is acting under the Obama Administration, so even if they win their appeal, the incoming Trump administration could make a moot point. But the DOL could also file a motion to stay the injunction, which would make the overtime rule effective, if only for a brief period of time. This could create some sticky situations with employers.
For employers, this has been a very confusing and sensitive situation. Some employers have already issued salary increases to their employees. If you are unsure how to handle the overtime rule situation for your business, consult with an attorney to determine the best course of action.
How APS Can Help
The updated overtime rule gave a lot of employers a wake-up call in regards to their business processes, especially tracking employees’ time. Our Time & Attendance solution simplifies time and labor management to ensure your company is accurately tracking employee hours and maintaining compliance. APS’s unified database system can help you:
- Manage employees’ schedules and accurately track time for controlled labor costs
- Automatically track employees based on their classification
- Ensure accurate payroll processing
- Easily run reports for salary exempt versus salary non-exempt employees per pay period
- Store important company and employee documents securely in our cloud-based solution