States and Businesses Sue, Attempt to Halt Federal Overtime Rule

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Recently, 21 states and a coalition of business groups filed lawsuits attempting to challenge the impending federal overtime rule, which is currently scheduled to become effective on December 1, 2016.  The new overtime rule will increase the salary test for exempt professionals to $47,476 per year for a full-time employee, over double the current salary threshold.

States that have filed lawsuits include Alabama, Arizona, Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Nebraska, New Mexico, Ohio, Oklahoma, South Carolina, Texas, Utah and Wisconsin.

For the time being, there is still no change to the overtime rule’s effective date of December 1, 2016.  ManagEase will continue to monitor and report if there is a court ruling that stops or delays enforcement.  However, employers are still encouraged to prepare for the December 1, 2016 effective date.

Action Items

  • Look for updates from ManagEase as we continue to report on this developing issue.
  • Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2016 ManagEase, Incorporated.

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