Update on FLSA and Overtime Ruling

It’s been a while since we’ve talked about the federal ruling on labor and overtime. Learn about the latest news regarding FLSA updates, and stay informed.


From the U.S. Department of Labor: What, if anything, has been decided?

In late 2016, we wrote about speculation in the labor industry that had employers questioning if the FLSA overtime rules could be overturned by the new presidential administration after the inauguration. (Take a look back at Will Trump’s administration repeal the FLSA?)

As of right now, it’s still on the table until May 1; as the story unfolds, we’ll keep you updated about the decisions being made.

A brief recap:

President Obama’s Department of Labor presented new rules outlining the thresholds and definitions for minimum wages, overtime rules, and more. Shortly after these new policies were to take effect, a preliminary injunction halted these new efforts. Employers, waiting eagerly for the new directive, were poised to make changes to the classifications of their employees and policies in order to maintain compliance. However, the frozen state of the labor laws meant employers were to patiently await new mandates from the (at the time, incumbent) president.

Where are we now?

At this time, President Trump’s Department of Labor seems to be leaning toward not appealing the injunction. What we do know is that the Trump Administration filed for an extension in order to better prepare for making a decision that will impact millions of Americans. The second extension provides for additional time; May 1st is the new hearing.

What do we do now?

While you’ve probably already taken major steps in correcting potential misclassifications and other policies that are impacted by these rulings, we recommend to brush up on 5 Labor & Hour FLSA Mistakes to Avoid and the ruling first imposed by President Obama’s Department of Labor in our blog about the Final Rule, New FLSA Overtime Pay Regulations.

Either way the wind blows, there’s no better time to dig deep into your existing labor policies, including your time tracking solutions. Ensure compliance with our user-friendly software, Xactime, or DayTrack, and contact our sales team with questions.