UPDATE: UPCOMING OVERTIME RULE CHANGES BLOCKED
On November 22, a federal judge in Texas, District Court Judge Mazzant blocked the Department of Labor’s Overtime Rule Change from taking effect on the proposed date of December 1. The judge agreed with arguments posed from states and business groups and issued an ’11th hour’ injunction that prevents the rule from being implemented on December 1.
The sudden halt puts the rule in limbo. With the Trump administration taking office in less than two months, the rule could be possibly still implemented, altered, delayed, or even abolished as such indications about omitting many unnecessary government regulations on US businesses have come from the administration.
Because of the uncertainty of the direction in where the DOL will go with the rule changes, some employers may be in a challenging position. If an employer has made changes to employee compensation plans to prepare for compliance with the overtime changes, they are within legal right to reverse the plan. However, this may not be a popular, ethical, or moral boosting move.
At very least, employers should communicate to their workforce of the changes in the DOL overtime changes and the new ruling and let their organization know that the situation will continued to be monitored and communicated throughout until a decision is made final on how the DOL will proceed.