Overtime Rule Halted, Not Over

John Chwat overtime rule haltedLast month I discussed the government’s pending overtime rule, which  was expected to shake things up for businesses around the country. The Department of Labor’s decision would have more than doubled the current salary limits for those eligible for overtime, with the potential of causing over a billion dollars in revenue loss for small enterprises. It was scheduled to take effect this month, but its implementation has been delayed.

U.S. District Judge Amos Mazzant III issued a preliminary injunction on the case, with the goal of preventing a mandatory payroll increase that may have resulted in layoffs for millions of people or fewer jobs altogether. This judgement was decided just before the Thanksgiving holiday, offering some relief to business owners who’d been wary of the change, like those in the security industry, with whom I’d spoke back in August.

The Labor Department, however, was not pleased. In a statement issued shortly after, the department expressed their disagreement with the ruling and promised to pursue its legal options. Thus, businesses remain in limbo about whether or not the rule will be implemented at all.

This delay is not an all out victory; it should not be perceived as such based on the current information. However, it does offer businesses some time to plan further and to begin implementing some of the structured changes to work culture and expectations to prepare for similar outcomes going forward.

With an administration transition just weeks away, there is no guarantee about whether this change to the Fair Labor Standards Act will be enacted. Yet I will provide updates on these developments as they occur.