DOL Rule May Require Retroactive Overtime Pay
Earlier this year, the Department of Labor (DOL) announced that, effective December 1, 2016, overtime pay would apply to full-time workers earning up to $47,476 per year, up from the current salary of $23,660. The rule was delayed upon the granting of a preliminary injunction in federal court on November 22, 2016, but the DOL filed an appeal to the injunction on December 1, 2016.
Should the overtime rule be enacted at a future date, businesses that have not yet complied with the new overtime rule may be responsible for paying retroactive overtime wages back to December 1, 2016. As the final outcome is still pending, business are faced with the decision of whether or not to apply the $47,476 threshold for overtime pay. Some businesses have already taken action by increasing full-time salaries to $47,476 to avoid the more costly overtime pay, while others are still waiting to see how the outcome of this injunction plays out.
We will continue to monitor the situation and keep you up to date on additional decisions following this case. Please contact a member of the Barnes Dennig team to discuss the implications of the delayed rule, planning for your workforce, and how you can be best prepared for future DOL rules.