The United States Department of Labor (DOL) announced December 1 they will appeal the preliminary injunction that halted the implementation of the Fair Labor Standards Act (FLSA) overtime rules changes. The DOL’s notice of appeal can be read here.
Implementation of FLSA, which would raise the overtime exemption eligibility for salaried professionals from $23,660 to $47,476 per year, was temporarily stopped by a federal judge on November 22, days before it was set to take effect. The sudden change has created a lot of confusion and uncertainty for both employers and employees nationwide.
The future remains uncertain at this point. The appellate process can be lengthy; while there is potential for the court to grant a motion for an expedited hearing or a motion for a stay (meaning the rule would be made to take effect), there is also a strong possibility the appeal won’t be heard before the January 20 change in administration. They would then have the option to reopen and revise the final rule.
Continue to monitor @NIRSAlive and the NIRSA website for updates on court activity and developments. Additionally, CUPA-HR has presented a great article by Alex Passantino of Seyfarth Shaw LLP, who authored their white papers on the FLSA overtime rule. The article contains information on the rule’s status and ideas for employers on managing the situation going forward.
In addition, the November 30 CUPA-HR webinar, “New Overtime Regulations Put on Hold”, presented by Alex Passantino, will be available on demand by December 7 for anyone who missed the live event.
While there are currently no easy or quick answers and each department will ultimately need to adhere to their own institution’s HR regulations, we hope you’ll continue reaching out on the Connect community and within your own NIRSA networks to share questions, concerns, ideas, and solutions.