Attention North Central Chamber Members

Attention North Central Chamber Members

Overtime regulations not going into effect on December 1st

What happened?

Over the last several months, businesses in North Central Massachusetts have been preparing to comply with new overtime rules set to go in effect on December 1, 2016. But last week, a federal judge blocked the new regulations, pausing businesses from having to comply with the law. In short, there are currently no changes to overtime laws.
Many employers have been actively taking steps to change personnel policies surrounding overtime pay, employee classification, and even the way employees perform their job duties. But with this latest decision, those changes may not have been necessary as existing overtime regulations are still in place.

What does this mean?

The federal judge’s injunction to this law gives merit to the existing court cases that have challenged the Department of Labor’s new overtime regulations. Basically, the federal judge believed that the lawsuits challenging the new regulations were legitimate cases that should be heard before any regulations are put in place.
This means that the salary threshold for overtime exemption is still $23,660 and not $47,476.

This decision is not permanent and court decisions could provide a variety of impacts and outcomes for overtime rules.

What to do next?

If you have already made changes to employee classifications and salary, it may be best to not make any more changes. It may be difficult to take back decisions you have made about an employee’s status and job duties. You should consider your own unique situations and the relative costs to making changes to your personnel policies.

If you have not yet made decisions or implemented changes regarding classification of employees, it may be best to hold off on making any changes and see how the litigation works out. You may want to have a plan in place to move forward in the future in the event that the federal judge’s decision is reversed. You should consult an employment attorney or CPA for guidance.

Need more information?

Keep an eye out for more information from the North Central Massachusetts Chamber of Commerce. If you need assistance, please reach out to Patrick Lawlor, public affairs manager, by phone at 978.353.7600 ext. 224 or by email