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ALERT: Federal judge delays implementation of FLSA overtime rule; employers not obligated to meet Dec. 1 deadline now

Overtime pay change image

November 28, 2016

Last week, a federal judge issued a preliminary injunction to at least temporarily delay the implementation of the Fair Labor Standards Act (FLSA) overtime changes published in May of this year. The revised overtime rule was scheduled to take effect Dec. 1 and would have raised the salary threshold from $23,660 to $47,476 for employees to be considered exempt from overtime payment.

A preliminary injunction preserves the law as is, while the court determines whether the Department of Labor (DOL) has the authority to make the final rule as well as whether the final rule is constitutionally valid. This means that employers are not required to implement changes to comply with the final rule, until additional guidance is provided by the courts.

If you have already implemented changes to comply with the final rule, you can reverse those changes, but you should fully consider possible effects, such as:

  • Employee morale
  • Administrative time/resources
  • Wage competitiveness in the market
  • Potential implementation requirements at a later date

If you have not implemented changes to comply with the final rule, you may choose to delay implementation until further notice.

For additional information or updates, visit the DOL overtime-specific webpage.

Need more information?

For more information about FLSA or other employee-compensation related questions, please contact senior organizational development consultant Carrie Cox using her information below.

Carrie Cox, PHR, SHRM-CP

Senior Organizational Development Consultant,
Organizational Development & Family Business Services
Carrie has experience in a variety of human resource functions, including labor laws, compensation structures, employee classification, benefits administration, performance management, and human resource best practices. She has served clients in a number of industries including manufacturing, construction, banking, and not-for-profits. Carrie is a member of the national and local chapters of the Society of Human Resource Professionals (SHRM) and serves on the Wichita chapter board of directors.

She is a certified practitioner for the Myers-Briggs Type Indicator® and the Hay Group’s Emotional and Social Competency Inventory. Her additional certifications include Professional in Human Resources (PHR) from the Human Resource Certification Institute and SHRM-CP designated by the Society for Human Resource Management.
Carrie Cox photo
Carrie Cox, PHR, SHRM-CP
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Information in this document has been obtained by Allen, Gibbs & Houlik, L.C. from sources believed to be reliable. However, AGH does not guarantee the accuracy nor completeness of any information. This communication does not and is not intended to provide legal, accounting or other professional advice or opinions on specific facts or matters, and accordingly, AGH assumes no liability whatsoever in connection with its use. Nothing in this communication can be used to avoid penalties that may be imposed by a governmental taxing authority or agency.