On Tuesday, a federal judge blocked a Department of Labor rule to extend mandatory overtime pay to more than 4.2 million salaried workers. The Labor Department rule was to take effect on December 1st and would have doubled the salary threshold to $47,500 from $23,660.
The Labor Department states that it “strongly disagreed” with the ruling and is considering legal options, including appeals. However, small business owners are in favor of the ruling, as they argue that it would be costly and would result in fewer hours for workers.
As a result, employers are not required to implement any changes on December 1, 2016. Niroc Consultants will stay abreast of this situation and will keep you updated as this situation progresses.