Dept. of Labor Overtime Rule – Update

Overtime Update FAQ from the U.S. Chamber:

What is the immediate effect of the court’s injunction?

– Any employer who has not yet put into effect their plans to comply with the new regulation does not have to—the reason for those plans has been blocked.

  • If employers have put compliance plans into place, they will have to decide what they want to do, but the only obligation is to comply with the previous salary threshold of $23,660/year, $455/week.

– Going forward, employers will not have to comply with the DOL’s regulation unless something changes, and they hear differently.

Is the injunction permanent?

No, the court’s action is a preliminary injunction, which means it could be lifted at a later date.   The Department of Labor has also indicated their intent to appeal the decision.  However, the timeline of their appeal is unclear and it’s uncertain whether they will be able to act before the Trump administration takes office on January 20th.

Is Congress planning any action?

-Congress is weighing its options to permanently repeal the rule.  However, to be successful, any congressional action must be signed by the president.  Therefore, it is unlikely Congress will act before President-elect Trump is sworn in on January 20th.

Action Item:

Letter to Congress in Support of the Regulatory Accountability Act – Please consider signing the attached letter urging Congress to make the Regulatory Accountability Act an early priority when they return to work in January 2017.  The Regulatory Accountability Act would make the regulatory process more transparent, hold agencies more accountable for their decisions, and allow for regulations that are better-tailored to achieve their purpose without unnecessary burdens on stakeholders.  Furthermore, it would  increase public participation early on in the rulemaking process, require on-the-record administrative hearings for the most costly regulations, and instruct agencies to choose the least costly option to achieve congressional intent.  To sign on, contact Amy Weaver at / (202)463-5331.  The deadline to sign is 12:00 p.m. ET on Friday, December 2, 2016.  Please indicate the exact way that you want your group to be listed.