Q: I heard a lawsuit was filed challenging the implementation of the revised overtime regulations. Do I still need to take steps to comply with the revised rules by December 1?
A: Yes! While it is true that 21 states and more than 50 business groups have filed two lawsuits challenging the Department of Labor’s revised overtime regulations, the filing of these lawsuits did not stay the effective date of the rules. In the past few days, the House of Representatives passed a bill to delay implementation of the revisions by six months, and a similar bill was introduced in the Senate. However, it is unlikely that either bill will be signed into law, given the President’s opposition to it.
Until a court or statute says otherwise, employers remain bound by the new revisions as of December 1. As a reminder, the primary change is the increase in the salary threshold for the most common white collar overtime exemptions (i.e., executive, administrative and professional) from $23,660 a year to $47,476 a year, or from $455 a week to $913 a week. For details on the recent lawsuits and practical steps you can take to implement the revised rules, check out this recent Pepper@Work Alert.