As reported here: http://www.hrdive.com/news/flsa-overtime-rule-blocked-preliminary-injunction-granted/431018/ and here: http://www.npr.org/sections/thetwo-way/2016/11/22/503081151/federal-judge-blocks-obama-administrations-overtime-pay-rule a Texas court has granted a nationwide injunction barring the Department of Labor’s new overtime rule from taking effect on December 1st as expected.
Employers are under no obligation to make any changes to either an employee’s compensation level, exempt classification, or timekeeping procedures as may have been necessary for any of their employees under the rule that was due to take effect next Thursday.
While many employers will feel relief over the removal of the mandate that the DOL estimated would cost businesses $295 million per year and would have effected an estimated 4.2 million workers, they should still proceed with careful reflection as to what to say to their employees, many of whom may have been told by proactive employers months ago to expect a, potentially substantial, raise with their first December paycheck. As our HR consultant Adam Calli shared, “Remember, they are YOUR employees, not the DOL’s and you have to manage their morale and level of job engagement. Like the old adage says, it’s not what you say, it’s how you say it. Keep that in mind when informing effected employees of the postponement and injunction.”
No doubt there will be much more to this story in the weeks to come. Employers are advised to watch their trade publications and the popular press closely for new developments.