DOL Overtime Rule Halted

Posted on Wednesday, November 30, 2016

The Department of Labor’s (DOL) new overtime rule has been halted by a federal judge. 

Currently white collar employees earning more than $455 per week ($23,660 per year) are generally exempt from being paid overtime if they perform certain duties.  Beginning December 1, 2016, this salary level was scheduled to increase to $913 per week ($47,476 per year). 

In a November 22 ruling, an injunction was put into place “while the court determines the department’s authority to make the final rule as well as the final rule’s validity”.  Therefore, the overtime rule will not take effect on December 1.  It could, however, be implemented at a later date.  Employers should still have a plan to move forward with the proposed changes if necessary; however, employers should continue to follow the existing overtime regulations until a final decision has been made. 

For more information on the proposed and existing overtime regulations, see our previous blog, DOL Overtime Changes.

Posted by: Carrie Minnich, CPA

Posted in Mission Minded Nonprofits

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