Implementation of Proposed Overtime Rule Varies Amongst Employers

As many are aware, the Department of Labor established new rules concerning overtime pay exemptions, which were set to take effect on December 1, 2016. However a Texas judge granted a temporary injunction stopping the rules from taking place. Nonetheless, many businesses had already taken steps to adjust to the new rules, and were left wondering what to do as many policy changes had already been set in motion. No definitive statement has been made as to whether these rules will take effect, however most believe with the change in administration that these adjustments will no longer be implemented. One workplace impacted by the rule was Georgia Southern University, which according to a recent study had more than 400 employees affected by the proposed change. According to a recent article, the university dealt with the back and forth in several different ways. First, all FLSA related salary changes remained in effect. However, some employees who were converted to non-exempt, went back to being exempt, while others who were newly non-exempt remained as such, and eligible for overtime pay.  The University indicated that employees had mixed feelings, however by being upfront with the changes – and how the hold may or may not affect workers – they hoped to alleviate concerns.

How each business reacts to the potential changed rule now that the rule is on hold may vary. However, all employees have the right to understand how they are being classified – and hence compensated. If you have questions concerning your pay or any other wage and hour issue, please do not hesitate to contact our dedicated Georgia FLSA attorneys at Buckley Bala Wilson Mew LLP for an immediate case evaluation.