Blog

Guest Post: DOL OT rule will not go into effect Dec. 1

November 23, 2016 -  By
DOL-150

Department of Labor USA

On Nov. 22, a federal judge blocked the Department of Labor (DOL) rule extending overtime eligibility to millions of American workers. The new rule was set to go into effect Dec. 1. In a preliminary injunction, the judge said the DOL didn’t have the authority to automatically update the minimum salary for exempt employees to $47,476 up from $23,660.

While the DOL is contemplating an appeal, many believe President-Elect Donald Trump will not support the rule and it will eventually die.

What this means: Anyone on your payroll who receives a salary and is exempt under the Fair Labor Standards Act (FLSA) does not need to be raised to a minimum salary of $913 per week from $455 or switched to hourly plus time and a half for hours worked over 40 in a week as long as he or she earns a minimum of $455 per week.

What this does not mean: It does not change any of the definitions of exempt vs. nonexempt employees.

What you need to do: If your company compensation program is compliant with exempt vs. nonexempt rules, then you don’t need to do anything. Some companies we encounter pay their lawn technicians or other production employees a salary. This classification is likely not compliant with the rules, and those companies should consider becoming compliant by paying technicians an hourly wage plus overtime after 40 hours or pay them in compliance with the exception under 7(i) in states that accept 7(i).

This article is tagged with , , , , and posted in Blog, Today's Green Industry News

About the Author:

Gordon is a New Jersey-based CPA and owner of Turfbooks, an accounting firm that caters to land care professionals throughout the U.S. Reach him at dan@turfbooks.com.

Comments are currently closed.