The Overtime Rule debate is chained to the question of whether an employee is exempt or non-exempt and if they will be paid overtime?  Exempt employees are often not entitled to overtime pay as their compensation is based on the work performed and not the amount of time it takes to perform their work duties.  To be considered an exempt employee, you would receive a salary versus hourly rate and fall into three main categories:

• Executive,
• Administrative
• Professional

Through the Fair Labor Standards Act (FLSA), a non-exempt employee is entitled to overtime pay.  Employers are required to pay time and a half the employee’s regular rate of pay when they work more than 40 hours in a given pay week.  The federal minimum wage ($7.25 in 2017) must be paid to the employee for regular time and at least time and a half for any hours worked over 40.

Currently, this topic is the catalyst for the discussion around the Overtime Rule debate that continues since a Texas U.S. District Judge issued a temporary injunction halting the rule nationwide.

The Labor Department rule would have extended overtime pay to more than 4 million workers at the end of 2016.  However, on February 22, 2017, the U.S. Court of Appeals for the Fifth Circuit granted a request by the Department of Justice for an extension of time of sixty days, until May 1, 2017, in which to file its reply brief.  The additional time was requested on behalf of the Department of Labor “to allow incoming leadership personnel adequate time to consider the issues.”

The verdict is still out...and everyone is waiting for the “next steps”.  At pinnaclesolvehr, we monitor those changes and keep our clients in the loop.

We are here to help!