We wanted to provide you a quick update on the changing regulations surrounding overtime for salaried employees.
In 2014, President Obama gave guidance to the Department of Labor to update the overtime regulations, which led to an increase in the salary exemption to $47,476 scheduled for December 1st. Based on this new rule, any salaried employee making less than $47,476 would be eligible for overtime.
Last week, a U.S. District Judge in Texas blocked this new overtime law. This injunction was nationwide and will prevent the new rules from going into effect on December 1st.
There are still a lot of unknowns, and we will keep you updated as more news comes out. In the meantime, here are some things you should know:
Your business does not have to make any changes by the Dec. 1st deadline.
You can continue to monitor, track, and pay overtime as you were previously.
If you’ve already made the changes, experts recommend keeping them.
The injunction is a temporary measure, and the regulation could still be implemented in the near future. It may also be more work or impact on your team to unwind the decision. You can read more here.
This ruling applies to all businesses.
Even though the block came from Texas, the overtime rule and the injunction apply to all states.
If the new overtime law does go into effect, we’re ready, with overtime tracking for salaried employees built in to Homebase. And, no matter what, Homebase can help eliminate some of your other scheduling payroll headaches, with free timesheets, easy employee scheduling and more, so you can get back to business.
We’ll keep you updated of any changes or further rulings.