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This Week’s HR News and Updates
November 28, 2016

Overtime Rule Stopped

Just a week before the December 1, 2016, effective date, the U.S. District Court for the Eastern District of Texas granted an emergency motion enjoining the Department of Labor (DOL) from enforcing the new overtime rule on a nationwide basis.

This means that until further action from the courts, Congress, or the new administration, the minimum salary threshold for the white-collar exemptions will remain where it has been since 2004, at $455 a week. The salary threshold for the highly compensated employee exemption will remain at $100,000 per year.

For employers that made plans to reclassify employees as nonexempt rather than raise their salaries to the $913-per-week level that was included in the new rule, these employees may continue to be treated as exempt (for now), as long as they otherwise qualify for exemption.

Employers that took steps to raise the salaries of exempt employees will have to carefully consider their next steps, as taking back salary increases will likely create an employee relations problem, and as of right now, the decision on the rule is temporary.

The theme for employers this holiday season seems to be uncertainty as we adjust to the injunction and prepare for the new administration. Stay tuned for more information throughout the week.

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Recent/Upcoming Compliance Dates

  • January 22, 2017: USCIS has published the revised version of Form I-9, Employment Eligibility Verification. The new version, dated November 14, 2016, must be used for verifications taking place on and after January 22, 2017.
  • January 1, 2017: The Arizona Fair Wages and Healthy Families Act, also known as Proposition 206, requires most private and municipal employers to provide paid sick time to employees (A.R.S. Sec. 5-23-371 et seq.). There will be new posting requirements related to this law.
  • January 1, 2018: Washington state Initiative 1433 requires employers to provide paid sick leave. There will be new posting requirements related to this law.

For guidance and compliance information, visit BLR® resource centers.



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