If you are late to the overtime party, it actually worked in your favor this time. The new overtime law has been placed on hold. The law was supposed to go into effect December 1st, but a Texas federal district court judge issued an injunction to prevent — or at least delay — the Department of Labor from enforcing the rule.
What does that mean?
All businesses nationwide do not have to adhere to the proposed law that would have taken effect Thursday.
The law is on hold until an order is issued by the district court, the Fifth Circuit, or the Supreme Court.
You must watch the news closely.
You must be prepared to make changes if and when the rule does go into effect.
What if you already made changes and told your staff?
You have to look at each situation. Here are two examples:
If you were just implementing the need for tracking hours, you can choose to hold off — as long as the duties and salary tests meet the current standard.
If you bumped up an employee's salary already and they know about it, do not go back.
Truth is, we don't know what is going to happen and there is a ton of speculation. Be safe, have a plan, and keep your ears open.