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DOL Overtime Rule – The Latest

by Mary Erin Casale

dol-ot

UPDATE 11/23/16: A  federal district judge in Texas issued a preliminary injunction blocking implementation of the Overtime Final Rule, ruling that the U.S. Department of Labor (DOL) exceeded its authority. Barring a last-minute appeal, the overtime rule will not go into effect as scheduled on December 1 because of this decision.

Read the latest information HERE. 

Implementation for the Overtime Final Rule is less than one month away (December 1) – is your organization prepared? In case you need a primer on the changes, check out this blog post. Remember, the final rule applies to employers in all sectors. There is no nonprofit exemption.

Resources

We’ve fielded lots of calls and emails about the final rule and wanted to ensure that you had the resources you need to make these changes. Check out:

Ongoing Legal Challenges

Even though efforts are underway to prevent the changes from becoming effective as scheduled, this is highly unlikely. You may have heard that last week the House passed a bill that would delay implementation of the overtime rule by six months (until June 1, 2017). There is a Senate companion bill, but the White House has made clear that the measure would be vetoed if it reached President Obama’s desk. Now that Congress has recessed until after the November 8 elections, blocking the overtime rule through legislative action is not going to happen.

Also, in the news here in Maine was Governor LePage signing on to a lawsuit in federal court in Texas seeking to strike down the overtime rule. The states’ complaint challenges the power of Congress and the Labor Department to set wage standards for non-federal public employees. To prevail, the states must get the U.S. Supreme Court to overturn its own precedent from the 1980s. This lawsuit claims that the DOL regulations are “arbitrary and capricious,” an allegation that carries a heavy burden of proof.

Next year, the new administration could alter the overtime rule, but only after the full regulatory process dictated by the Administrative Procedures Act is exhausted. In the alternative, Congress could seek to revise the underlying Fair Labor Standards Act. We’ll keep you updated.

In One Month

Remember, employers have various options to comply with these change in overtime rules, ranging from increasing exempt employees’ salaries to the new level, converting them to hourly employees and paying overtime, or making other changes to benefits or operations. Every nonprofit will have a unique solution and there is no one-size-fits-all strategy. However, if you follow best practices and have an honest conversation with staff and management you’ll be prepared for December 1 and beyond.

If you’ve still got questions, feel free to email us or call at 207-871-1885.

One thought on “DOL Overtime Rule – The Latest

[…] employers and employees, with no exception for nonprofit organizations.  For more information, see http://www.nonprofitmaine.org/blog/dol-overtime-rule-latest/.  It remains to be seen whether the new administration or Congress will attempt to overturn the […]

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