Overtime rule now on hold

|  November 23, 2016
Photo: ©iStock.com/OGphoto

Photo: ©iStock.com/OGphoto

On Nov. 22, a federal judge in Texas issued a preliminary injunction against the Department of Labor (DOL) rule on the income level at which employees are entitled to overtime. The rule was set to go into effect Dec. 1, 2016.  The judge said the DOL didn’t have the authority to automatically update the rule, which would have made the minimum salary for exempt employees $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, based on campaign promises he made.

What this means:  Employees who receive a salary and are exempt under the Fair Labor Standards Act (FSLA) do not need to have their salaries raised to a minimum salary of $913 per week from $455 or switched to hourly and time-and-a-half for hours worked over 40 in one week, as long as they earn a minimum of $455 per week (see DOL Fact Sheet #17A).

What this does not mean: The ruling does not change any of the definitions of exempt vs. non-exempt employees.

What you need to do: If your company’s compensation program is compliant with exempt vs. non- exempt rules, you don’t need to do anything. Some pest management companies pay their technicians a salary. This is not compliant with the rules, and those companies should consider becoming compliant by paying technicians an hourly wage plus overtime after working more than 40 hours in one week, or pay them in compliance with the exception under 7(i)  in states that accept 7(i) (see DOL Fact Sheet #20).

For additional information, see “What the new OT rule means to PMPs,” which appeared in the July 2016 issue of Pest Management Professional magazine.

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