The Department of Labor’s new overtime rule that would have required paying non-teaching staff overtime unless they met annual salary limits has been put on hold by a federal judge. The rule sought to update the overtime regulation of the Fair Labor Standards Act (FLSA) and was a major initiative of the Obama Administration.
The rule, which was set to take effect on Dec. 1, 2016, would have increased the salary threshold for the “white collar overtime exemptions” to $47,476 per year. Full-time employees earning less than that amount would have to be paid time-and-a-half for every hour worked over 40 hours.
The judge’s ruling gives employers across the country a reprieve from having to raise salaries for exempt employees to the new threshold or paying them overtime.
However, the Department is appealing the ruling. Even if the appeal is successful, the new Trump Administration could choose to overturn the rule.
Until then, private schools can continue to follow existing overtime laws.
WCRIS will continue to monitor the progress of the court case and provide updates when new information is available.
