5 Key Facts About the DOL Overtime Delay

November 23, 2016

2015 labor laws

On Tuesday, November 22, a United States District Court for the Eastern District of Texas enacted a nationwide injunction on the Department of Labor’s White Collar Overtime Exemption, which was set to go into effect on December 1. The injunction prevents execution of the regulations, pending further Court proceedings.

What happened?
A U.S. District Court ruled for blocking the Department of Labor’s White Collar Overtime Exemption. Many experts considered this an unlikely ruling, especially just a week before the updates were set to go into place. In the simplest terms, this means that this new regulation has been delayed.

How is timing affected?
The December 1, 2016 implementation date is no longer required. A new date for implementation has not been provided or suggested yet.

What changes may occur to the rule?
It depends. This may cause some changes to the rule in the future, but nobody know yet how this will affect the current rule. We recommend that businesses still plan for the current rule, but with a delayed implementation timeline.

What if I already made major updates to pay structure, job descriptions and more?
If you have already made changes to your employees pay structure, job duties, company policies and more, we recommend that you keep those in place, as this ruling may only delay the updates. Reverting these updates may cause compliance challenges, and we do not yet know if the new date for implementation will be delayed a few months or a few years.

Where can I stay up to date?
Paycor is committed to keeping our clients up to date on these major compliance announcements. Stay tuned for more information by regularly visiting Paycor.com/DOL. The Department of Labor will also continue to share updates on this regulation on DOL.gov.

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