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On Tuesday, November 22nd a Texas federal judge put a temporary halt on the Federal overtime rule which was scheduled to take effect December, 1. The rule would have raised the salary threshold from $23,660 to $47,476 on jobs that were to be considered exempt from overtime requirements.  With the legal suit, it will likely be some time before this matter is resolved.

What now?

Because the regulations were expected to be implemented in just days, it has raised the visibility of the issue so much it is not likely to just go away, even if the regulation is ruled improper. It will probably be back with perhaps some implementation modifications.

In fact, many employees have already been told they will have a pay increase.  This of course then raises the question of what to do now: Do you leave it in place or do you take it back?  The latter option will undoubtedly become a bit of a morale issue. It may also lead to many of the employees saying they are worth the higher rate and begin looking for organizations who will pay it.

There is also the employee group that has been told they will be treated as non-exempt and eligible for overtime going forward, and how they will be required to keep records. For many, this would have been a bit of a windfall, especially if they continue to work the hours associated with a managerial type position.

Walking away from this matter will likely be more complicated than just reversing those steps taken for compliance. It should be considered carefully from both monetary, morale and employee retention perspectives.

Help is available at P3HR, if you need assistance to work through these matters.