Employers were already preparing for the new The Fair Labor Standards Act when a Texas district court places an injunction that halted the new overtime rule right before it was set to take effect. Under the new law, salaried employees earning under $47,476 annually would be entitled to overtime wages.
But now that the law is in limbo, many employers are wondering what will actually happen in terms of overtime and what they can do to prepare. To help clarify the future of overtime, QSR spoke with labor and employment lawyer Tim Garrett about the possible future of the overtime rule.
“It’s been our consistent advice that those who have already announced and implemented changes either in salaries or in classifications, should probably stick with those and not attempt to undo them, which would likely be more disruptive,” said Garrett. “Those that are facing the real tough spots and have decided for that reason not to implement it, I think transparency is best ... because the morale issue is real. The more transparent and candid employers are with employees, the more that credibility gap can be lessened or even eliminated.”