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ALERT: Dual win for employers: OT rule blocked, EEO-1 pay reporting blocked

Overtime eligibility image

September 14, 2017

Overtime ruling blocked

A US Department of Labor (DOL) regulation which would have made more than 4 million employees eligible for overtime pay has been permanently struck down. The same federal district court judge who issued a preliminary injunction to delay the regulation in November 2016 has made a further ruling that the DOL had exceeded its authority and was not consistent with Congress’ intent to define who was exempt from overtime.

The DOL’s changes to the Fair Labor Standards Act (FLSA) overtime regulations, slated to go into effect Dec. 1, 2016, would have raised the salary threshold for employees eligible for overtime from $23,660 annually to $47,476. The judge’s ruling means current overtime regulations remain in place, including the $23,660 salary threshold. The DOL is expected to revisit the salary threshold again, but not likely to make a significant increase all at once. Between now and Sept. 25, the DOL is accepting employer comments on the FLSA minimum wage and overtime requirements online.

EEO-1 pay data reporting suspended

Organizations employing 100 or more will not need to report pay data on their EEO-1 form by a March 31, 2018, deadline. On Aug. 29, the Office of Management and Budget (OMB) issued an order to review and immediately suspend the controversial pay data collection portion of the EEO-1 form. Organizations must still comply with the March 31 deadline to report other data, such as race, ethnicity, gender, and job category, but they may leave the pay section blank. Employers with fewer than 100 employees will not be required to complete the revised EEO-1 report; reporting requirements differ for federal contractors.

The revised EEO-1 form, issued on Sept. 29, 2016, was intended to help the Equal Employment Opportunity Commission (EEOC) collect pay data which would identify potential pay discrimination and provide data for investigations. However, it also greatly increased the amount of data employers were expected to submit. Many employers opposed pay data collection for that reason, while others questioned its usefulness in identifying pay inequities. Regardless of the OMB’s suspension of pay data, a compensation structure which creates internal and external equity helps recruit and retain key talent.

Need more information?

If you have questions about how these changes may affect your organization, please contact your AGH professional, or Carrie Cox, AGH’s senior consultant in organizational development and family business services using the 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.