On November 22, 2016 a judge issued a Preliminary Injunction which barred the Department of Labor from implementing its Overtime Final Rule beginning December 1st, 2016. While many employers were pleased with this outcome, it is important to remember that the Department of Labor strongly disagrees with the court’s decision and has filed a notice of its intent to appeal the decision. While there is no way to know how the litigation will ultimately be resolved, employers should be deliberate when deciding how to react to the injunction.
If your business started complying with the new Overtime Final Rule, consider:
- Did you transition any of your employees from a salaried position (exempt from overtime) to an hourly model?
- If so, will you encounter employee resistance to reverting to those employees being exempt from overtime? Will the intangible costs of that resistance outweigh the compensation savings?
- If the order is overturned on appeal will the overtime savings be worth any turmoil you might encounter by reverting to your prior compensation model?
- The Court of Appeals has approved the Department of Labor’s request to expedite the appeal, so the reprieve from the Overtime Final Rule may be short-lived.
If your business had not started complying with the new Rule, consider:
- Will you have time to begin complying quickly if the injunction is overturned?
- Do you have the ability to track time for the affected employees?
- If you did not previously have hourly employees are you prepared for the additional workload of tracking time worked?
Regardless of which approach you selected, it is important to remember that compensation is just one requirement that must be met to exempt an employee from overtime compensation. Employees must also meet the requirements of the duties test and salary basis test. If you are uncertain what these tests require, now is a great time to evaluate each exempt employee to confirm they are truly exempt under the law.
Can your technology efficiently deliver on tracking time and managing overtime for your non-exempt employees?
Mosaic’s Workforce One platform is uniquely positioned to help you manage employee compensation. Workforce One is a comprehensive workforce management system that has the Human Resources, Payroll, Benefits, Affordable Care Act and Time Keeping capabilities you need to manage your workforce efficiently – all delivered on a single database with a single user- interface.
If you would like to learn more about Mosaic’s Workforce One platform, call (303) 645-4270 or visit