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THE MORNING CALL: myHR Partner offers expert commentary on last-minute court block of overtime rule change

Posted on: December 5th, 2016 | Category: Government Regulatory & Compliance Issues, News & Media, Our Blog

blocked overtime rule changes

myHR Partner President Tina Hamilton, PHR weighed in as one of several experts commenting in an article in The Morning Call on recent a last-minute injunction by a U.S. District Court in the Eastern District of Texas of the Department of Labor‘s (DOL) overtime rule changes. These changes were set to go into effect this week, on Dec. 1, 2016, but this court blockage prevents the implementation of the new Fair Labor Standards Act (FLSA) rule that would have given an estimated 4 million more American workers eligibility for overtime pay heading into the holiday season.

According to the article, “Employers whipsawed after court blocks overtime rule”,  businesses that have spent the past several months preparing for the rule extending the right to overtime pay to a huge number of lower-wage white-collar workers were then forced to spend their holiday weekend scrambling to figure out what to tell their employees just days before the regulation was set to take effect. The overtime changes are now unlikely to happen before the start of the new presidential administration, which has previously spoken out against the current administration’s government regulations.

From the article:

The Department of Labor could appeal the Tuesday ruling, which might end up at a Supreme Court that includes some Trump appointees.

 

As the rule is on hold, employers should stay up to date on information in case the regulation is put back in motion, advises Tina Hamilton, president and CEO of myHR Partner, an Upper Macungie Township human resources company.

 

Hamilton said she received a couple emails from clients on Wednesday, wondering what they should do now that the rule has been put on hold.

 

“In essence, it’s almost worse than it was before,” she said. “While we would have loved six months ago for them to say, ‘Hey, we’re not going to pass this bill,’ that would have been fabulous. But once you start giving all these pay increases and changing people around and readjusting the entire business, what are you supposed to do?”

 

Well, [there are] a couple options, Hamilton and other experts said.

To read the whole article, click here.

contact usThe injunction puts many employers in a very difficult situation. Many businesses have already revised employee contracts ahead of the deadline, changed their management structures and told salaried workers they would need to be paid on an hourly basis, according to the article. The DOL said it’s now considering all its legal options.

Stay tuned, folks. It looks like it’s going to be a very busy December.

We offer FLSA compliance support services.

A comprehensive examination of your organization’s overtime situation is essential.  You need to know what exactly to do now that the new DOL rulings have been blocked, and keep up to date on any further developments. Our overtime compliance services are thorough, targeted and done by experienced and knowledgeable HR experts. We offer support on how best to manage compliance in a way that makes sense right now, and in the long run. And we can help you communicate with your workforce as you work through these latest developments.

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