The DOL recently issued a new overtime rule that was set to become effective on December 1, 2016. The main item in the new DOL rule impacting small businesses revolved around which employees may be exempt from overtime pay under the “white-collar exemption.” According to the new rule, to qualify for this exemption, an employee would need to earn at least $47,476 per year (an increase from the current annual threshold of $23,660).
The Not-So-Cheery Reactions to the DOL Overtime Rule
A group of 21 states and a coalition of more than 50 business groups (including the U.S. Chamber of Commerce) each filed separate lawsuits against the DOL, arguing that the agency had overstepped its bounds. On November 22, 2016, a U.S. district judge issued a nationwide injunction to block the rule and agreed that changing the overtime rule should be up to Congress, not the DOL.
Business groups and retailers that are gearing up for the holiday season applaud this injunction. Because the holiday season is one of their busiest times of the year, avoiding the overtime changes gives them more flexibility in scheduling employees. Conversely, the DOL strongly disagrees with the court’s decision and is considering what legal options to pursue.
Contact CRI for Updates Regarding the DOL Overtime Rule Injunction
While this court ruling blocks the December 1 implementation date, there is still some uncertainty about the final outcome. For example, the DOL may appeal this court decision. Additionally, the incoming White House administration may have a different viewpoint regarding the overtime rule. CRI will continue to monitor this situation, so feel free to reach out to us with any questions.