DOL Overtime Rule: Update

The U.S. Department of Labor’s (DOL) overtime rule is unlikely to come to fruition. The rule, which was scheduled to take effect Dec. 1, 2016, was delayed by federal court injunction on Nov. 22, 2016. In December, the DOL filed for an expedited appeal of the court injunction.  However, on Jan. 25, 2017, the DOL has requested a 30-day extension to file a brief in its appeal.  Recent actions by the administration suggest that it is unlikely that the overtime rule will ever become effective, even if the DOL is successful in its appeal.

For now, employers can rely on existing overtime exemption rules. Employers that have already made adjustments to comply with the new rule may find it difficult to reverse any changes.  For employers looking to roll back salary adjustments, carefully consider employee morale and the potential impact that rescinding promised changes may have on your company.

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The information provided is for informational purposes only and does not constitute legal advice. The information above contains only a summary of the applicable legal provisions and does not purport to cover every aspect of any particular law, regulation or requirement. Depending on the specific facts of any situation, there may be additional or different requirements. This is to be used only as a guide and not as a definitive description of your compliance obligations.