Subcontractors Association of Western Ohio
NEW OVERTIME RULES PLACED ON HOLD BY
By Bob Dunlevey
On November 22, a federal Judge in
Texas enjoined the U.S. Department of Labor from
implementing its new overtime rules throughout the U.S.
– regulations which were to become effective December 1.
The new overtime rules made approximately 4.2 million
more workers subject to overtime compensation by
stripping them of their exemptions. This is a
preliminary injunction only and the final ruling will
come in the months to come. In the meantime, employers
need not comply with these new rules which require
employees to receive at least $47,476 per year to enjoy
the overtime exemption. Employers may wish to put on
hold any salary increases given to employees in order to
satisfy the higher salary test.
The Judge ruled that the DOL's
promulgation of these regulations exceeded its
authority. The Court appeared to say that the focus as
to whether an employee is exempted should not be on the
amount of salary earned, but instead the actual duties
performed. But, for many years, a salary threshold
requirement has existed but only required an annual
salary of $23,660.
The DOL stated "We strongly disagree
with the decision by the Court, which has the effect of
delaying a fair day's pay for a long day's work for
millions of hardworking Americans." Of course, these new
regulations continue to be extremely controversial and
the 21 states and various trade associations including
the U.S. Chamber of Commerce appear to have great
resolve in stopping these new regulations from being
implemented. This case needs to be carefully watched
because it also sets the tone for further attacks on
other rules and regulations promulgated by other
agencies during President Obama's term.
Based on this federal Court
case, employers need not comply with the new overtime
regulations on December 1 but should remain prepared to
do so in the event the decision of the federal Judge is
modified or overturned.
Most importantly, in the
last several months, I have met with numerous employers
in order to ensure compliance with the new regulations.
This exercise confirmed that many employers had
misclassified employees as exempt under the previous
employers should not delay
in reclassifying those employees previously
misclassified. Remember, it is estimated that 70% of
employers are in violation of federal wage-hour laws.
Audit your wage-hour practices today!
For additional information or for
audit assistance, contact attorney Bob Dunlevey, OSBA
Board Certified Labor and Employment Law Attorney at
10-Step Business Plan for Safety
With BWC's 10-Step Business Plan for Safety employers can focus on implementing
a more effective safety plan one step at a time as opposed to getting lost in
the "where to start" phase of the big picture.
While some of the BWC programs require employers to complete the 10-Step
Business Plan for Safety, it can also be a good resource for companies looking
to implement a new safety program or simply improve an old one.
See more at:
Click here to see Step #1 - Visible, Active Senior Management Leadership
Click here to see Step #2 - Employee Involvement and Recognition
Click here to see Step #3 - Medical Treatment and Return to Work
Click here to see Step #4 - Communication
Click here to see Step #5 - Timely Notification of Claims
Click here to see Step #6 -
Safety & Health Process Coord. & Employer Education
Click here to see Step #7 - Written Orientation and Training Plan
Click here to see Step #8 -
Written and Communicated Safe Work Practices
Click here to see Step #9 -
A Written Safety and Health Policy Statement
Click here to see Step #10 -
Recordkeeping & Data Analysis