By Rik Jamieson | Assistant PNW Conference Treasurer
Just before Thanksgiving a federal court in Texas granted a nationwide injunction blocking the enforcement of proposed changes to the Fair Labor Standards Act (FLSA) overtime rule. Employers are no longer required to meet the December 1 deadline. The lawsuit, filed by 21 states and a variety of employer groups, argued that the Department of Labor (DOL) exceeded its authority when it nearly doubled the salary level required for overtime exemption from $23,660 ($455/week) to $47,476 ($913/week).
The court held that the states were able to show “irreparable harm” if the rule went into effect and that the DOL exceeded its authority when it raised the salary threshold.
We’ll add here a reminder that what has been and continues to be the law is that all employers should pay employees eligible for overtime for the hours they actually work supported by time keeping records. Furthermore, time worked in excess of 40 hours in any work week should be paid at a “time and a half” rate.
It is still important to note that you should continue to shore up your record keeping to have all hourly staff, and staff eligible for overtime, keep a time record of hours worked. This is a best practice and is required no matter what form FLSA eventually adopts.
No doubt this decision will be appealed to the Fifth Circuit Court of Appeals, but for now, the new overtime rule will not go into effect. If you have any questions, please contact Rik Jamieson (206-870-6818, Email) in the Treasurer’s office.
