Current status of U.S. overtime legislation

Overtime was headline news throughout 2016. The once-proposed changes to the overtime salary threshold under the Obama administration quickly devolved into the stalling of its implementation, parties on either side trying to push for a favorable decision, and businesses of all sorts scrambling to undo the various measures they’d undertaken in anticipation of the seemingly now-defunct changes. Since then, there’s been quite a bit of change and uncertainty surrounding overtime legislation. Read on to see exactly where we’re at now:

Status of Obama-era overtime increase

This once-finalized legislation (which would have increased the nonexempt overtime salary threshold from the current $23,660 annual to $47,476 annual) was scheduled to go into effect in December of 2016, but then stalled by a preliminary injunction from a U.S. District Court in Eastern Texas.

Want to dive deeper into overtime statistics in the United States? Download our Overtime Infographic to learn more.

Since then, the U.S. Department of Labor (DOL) has decided not to challenge this injunction, effectively abandoning the change altogether. On June 30, the DOL announced that it will instead attempt to draft new legislation that will lower the nonexempt salary level.

Additional proposed overtime changes

The latest bill — the Working Families Flexibility Act — proposes to tweak the FLSA’s stipulation that employers must pay employees overtime (at 1.5 times the regular rate for time worked over 40 hours each week). If the bill passes, then employers would have the option to offer non-exempt employees compensatory time off (banked at the rate of 1.5 times the number of overtime hours worked, up to 160 hours) in lieu of overtime pay. The bill — already passed in the House — is currently being considered by the Senate, with revisions anticipated. If it passes, it likely would not go into effect until sometime in 2018.

What this means for businesses

Although the legislation surrounding overtime compliance remains largely in flux, it’s never a bad time to audit your workforce and ensure that both your exempt and nonexempt workers are rightfully classified as such. Take the necessary steps to ensure that your business is prepared to quickly respond to pending overtime changes, regardless of their ultimate outcome.

For more information on current overtime legislation and how your business can prepare for it, register for our July 25th webinar with wage and hour legal expert Brian Dixon.

Regina Mullen

ABOUT THE AUTHOR

Regina Mullen

Regina is the Workforce Management Expert & Content Marketing Associate for Replicon. Replicon provides award-winning products that make it easy to manage your workforce. With complete solution sets for client billing, project costing, and time and attendance management, Replicon enables the capture, administration, and optimization of your most underutilized and important asset: time.

get-started-today

Get started today.
Set up a free trial based on your business needs.

Start Free Trial

Navigating-the-recession-with-automation

How Automation Can Recession-proof Your Enterprise

In a highly competitive market, service-based businesses need to capitalize on any opportunity to set themselves apart from their (often very similar) competitors. While implementation, system details, and service management… Read More
Making-Sense-of-Quiet-Quitting

Overcoming Quiet Quitting Using PSA Tools

The onset of AI and smart machines automating formerly-human jobs has been discussed at length as of late -- often in relation to manufacturing and manual labor jobs. And yet,… Read More
Compliance-Canada

Global Compliance Desk – Canada

Time magazine labels the millennial generation the “most threatening and exciting generation,” infamous for “narcissism [and] its effect: entitlement.” In the workplace, the perception of the millennial workforce is no… Read More

Using shared services? These five technologies are a must

As organizations continue to scrutinize operating costs and look for areas to drive efficiencies, shared services centers (SSCs) are a no-brainer. The concept of a multi-function SSC has been around… Read More

Employee time tracking is dead

iBeacons, Bluetooth Low Energy, Proximity sensing and the obsolescence of time tracking as we know it. Businesses have to track the time their employees work for a variety of reasons,… Read More

Reducing Absenteeism with Effective Time Management and Absence Tracking

Workplace absenteeism is a major concern for American companies. According to the US Bureau of Labor Statistics, unplanned absences cost American businesses an average of 2.8 million workdays every year,… Read More
  • Polaris
  • Time & Project Insights
  • Time & Projects Solutions
  • Replicon Products
  • Replicon Users
  • Enterprise Time Tracking
  • Thought Leadership
  • Cloud
  • Corporate
  • Professional Services Management
  • Shared Services Management
  • Time and Attendance Management
  • Customer Feature
  • Time Intelligence
  • Industry News
  • Global Compliance Updates
  • Others