October 11, 2016
The first challenge to the new FLSA Overtime Exemption Rules, which will increase the minimum salary threshold from $455 per week to $913 per week, began on Tuesday September 20, 2016, when two lawsuits were filed in Texas arguing that the Overtime Rule changes exceed the authority of the Department of Labor. The latest challenge comes from the U.S. House of Representatives. On September 28, 2016 the U.S. House of Representatives passed H.R. 6094-Regulatory Relief for Small Businesses, Schools and Nonprofits Act with a count of 246 Yeas and 177 Nays. This bill would postpone the effective date of the new FLSA Overtime Rules for six months, resulting in a new effective date of June 1, 2017. The bill has been delivered to the Senate and read for the first time; however, any further action will have to wait until the Senate reconvenes following the end of election season. The Senate is only scheduled to be in session for eight days between now and December 1, 2016, the current effective date of the new FLSA Overtime Rules. Given the fast approaching effective date of the rule and the lengthy procedural process still remaining before the bill becomes a law; employers should continue to prepare to become compliant with the new FLSA Overtime Rules by December 1.
For more information on the Fair Labor Standards Act New Rule or other human resources needs, please contact Clemans Nelson at 1.800.282.0787 or contact one of our regional offices:
Akron 330.785.7700 | Cincinnati 513.583.9221 | Columbus 614.923.7700 | Lima 419.227.4945