The New December 1st Overtime Rule Is On Hold! Here’s What You Need to Know.

by Michael Gugel, CPO @ GoCo

On Tuesday, November 22, 2016, a federal judge effectively halted the implementation of the new DOL overtime rule set to have taken effect on December 1st, 2016. One of the most important (and controversial) aspects of the new rule was that anyone making under $47,476 was eligible for overtime pay (up from the previous $23,660 threshold).

In a nutshell, the judge issued the injunction because he thought that it was Congress’s intention for the overtime rules to focus on the duties that employees were performing rather than salaries. The salary level was purposefully set low to “screen out the obviously nonexempt employees, making an analysis of duties in such cases unnecessary.” Setting the salary bar to $47,476 put way more emphasis on salary than Congress intended.

What does this mean for you?

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  • You don’t need to comply with the new overtime rule…yet.
  • You do need to comply with the old overtime rule. The overtime salary threshold will continue to be $455 per week. You can find more guidance on the FLSA rules here.

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