On Tuesday, November 22, a federal judge in Texas issued a nation-wide preliminary injunction to stop the overtime rules from taking effect on December 1, 2016. A preliminary injunction is not permanent. Once the courts review the revisions to the regulation, the rules may be implemented at a later date.
Many employers have already made changes to their payroll practices in anticipation of the December 1 implementation date. At this point, employers may decide to continue with those implementation plans or wait. If employees have already been notified of the change, it will be difficult to reverse that decision, especially for those employers who have provided salary increases to meet the proposed threshold. Currently, employers must comply with the existing overtime rules and threshold of $23,660.
We will continue to provide more information as it becomes available. If you have any questions, please contact your Hawkins Ash CPAs representative.