FLSA RULING TO BE IN FORCE DEC. 1st ON HOLD
A federal Judge in Texas has granted an injunction regarding the FLSA changes due to be in place December 1st. An injunction is not a permanent rollback of the overtime rule changes. The changes could still go into effect after a full review of the case. However, injunctions are also not granted unless the actual case is likely to succeed on its merits. The granting judge evidently has a belief that there is legal standing to what the states and Chamber of Commerce have argued.
The many articles surfacing today suggest that organizations can now put their change plans on hold. We strongly disagree because most organizations that we have talked with have already made adjustments to comply with the new rules.
We advise that organizations sit tight and wait to see what happens next. Undoing the change that many organizations have already made might subject employees to whip-lash, especially if after undoing what was done then has to be changed yet again. We suggest that you tell employees about the injunction and that the increase in pay is possibly a temporary holiday gift which may not be in force for long.
Read Judge Mazzant’s full Opinion and Order
Additional Resource on this topic: Department of Labor, Fair Labor Standard Act, Compliance Assistance