As we reported in our July and November 2016 newsletters, the U.S. Department of Labor (DOL) previously released regulations which would significantly impact employers’ responsibility to pay overtime wages by requiring employers to pay overtime to employees who earn less than $913 week. The regulations were scheduled to take effect on 12/1/16. However, various groups filed challenges to the regulations in federal court. In late November 2016, a federal judge granted a temporary injunction preventing the regulations from going into effect. Thereafter, the DOL appealed the injunction and briefing is scheduled to be completed by 5/1/17.
Many speculate that the Trump Administration will allow the regulation to die by instructing the DOL to withdraw its appeal. However, President Trump’s Labor Secretary nominee, Alexander Acosta’s position on the new overtime regulation remains unknown. Thus, the fate of the overtime regulations remains unclear. We will continue to monitor the situation and keep you updated.
For details about the DOL regulations, click here.