Important Updates on the New Overtime Rules

by | Dec 2, 2016 | Uncategorized

Recently on the CPA Desk, we shared with you a series of the PKF Texas – Entrepreneur’s Playbook episodes that featured our friend Wilka Toppins of Toppins Law firm. She shared the upcoming changes in overtime rules put in place by the Department of Labor. The changes centered around raising the maximum salary needed to be eligible for overtime compensation from $23,000 annually to $47,476 annually. Basically, these rules said that if you make less than $47,476 a year you would be eligible for overtime pay. Originally set to go into effect on December 1, 2016, these rules are blocked for the time being.

Blocked? How?

Judge Honorary Amos Mazzant, Eastern District of Texas, entered a nationwide injunction that blocks the Dept. of Labor from implementing the new rules. After a series of lawsuits surrounding this topic, he determined the Dept. of Labor had no authority to determine salaries.

So, what now?

It is currently unknown whether the Dept. of Labor will appeal or not, so the change is on hold. There are no current action points for employers. You can find more information on these changes at the Society for Human Resource Management here.


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