In May, the US Department of Labor released final regulations that increase the minimum salary required to be earned by an employee in order for that employee to be exempt from the Fair Labor Standards Act (FLSA) overtime requirements from $455/week ($23,660/year) to $913/week ($47,476/year). The current levels have been in place since 2004. For more information, please see an Industry Pulse article from last year.

 

In October, 21 states asked the US District Court for an emergency preliminary injunction against the FLSA's overtime changes. The court ultimately agreed with the states, granting an injunction and delaying the overtime scheduled to go into effect on December 1 ^st. The delay is temporary while it remains in the court system and a final decision is made. Additionally, it is fully possible that the new Trump administration could modify or repeal the FLSA changes separate and apart from what the court decides.

 

In the meantime, many employers have spent months preparing for these changes, identifying workers affected by the final regulations and determining whether to increase their salaries to comply or reclassify them as nonexempt employees - and communicating those changes.

 

HR experts seem to agree that while the rule is delayed, employers should continue to evaluate the FLSA status of their employees by reviewing job duties and descriptions and ensuring that they have employees classified properly. Whether the rule is upheld or not, all employers are subject to current FLSA requirements that dictate classification and payment methods.