Is the Department of Labor (DOL) overtime rule nowdead? Will the overtime rule be modified to a more modest version?Much uncertainty remains regarding the recently announced overtimerule in both the legal and the political sphere.

The Legal Landscape

In a ruling announced on Nov. 22, just days before a Dec. 1effective date, U.S. District Judge Amos L. Mazzant of the EasternDistrict of Texas halted nationwide the effectiveness of the newregulations. These regulations would have more than doubled thesalary level required to be paid by employers to those employeeswho are classified as exempt from receiving overtime pay.

The DOL has appealed the ruling, and the court has granted theDOL’s request for the appeal to be heard on an expeditedbasis.

The Current Political Landscape

Trump has appointed a known opponent of the new overtime rule tobe Secretary of Labor. Some Congressional Republicans are planningan attempt to revoke the new regulations in the new Congressthrough use of the Congressional Review Act.

The legal and political landscape has created uncertainty, andmany employers wonder what to expect. A more detailed analysis isherein, but several strategies are being explored on both fronts,either to halt the rule in its entirety, or to modify its dramaticincrease of the salary level to a more modest “phased-in”approach.

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.