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Implementation of Labor Department’s Dec. 1 overtime rule stopped

November 28, 2016 By Andrew Smith

DOLA Texas court has issued a nationwide preliminary injunction stopping implementation of the Department of Labor’s (DOL) rule to more than double the current salary threshold for certain exemptions from overtime pay.

The court ruled on November 22, just a few days before its December 1, 2016 implementation date.

The court ruling came in response to lawsuits filed by 21 states, the U.S. Chamber of Commerce, and other business groups.  The plaintiffs argued that the DOL exceeded its statutory authority in raising the salary threshold and by providing for the automatic adjustment of the threshold every three years.

  • The DOL rule would raise the salary threshold from $23,660 to $47,476 annually, more than doubling the minimum annual salary a worker can earn and qualify for an exemption from the overtime pay provisions of the Fair Labor Standards Act.
  • DOL’s rule would also adjust the threshold every three years based on the 40th percentile of wages for full-time salaried workers in the lowest wage earning geographic area captured by the U.S. Census.

The preliminary injunction issued by the court cites concerns that the rule improperly created a salary test that would consume Congressional intent that the exemption be based on the type of duties performed. Additionally, the court found merit in plaintiffs’ argument that states would be irreparably harmed by implementation of the rule before a final decision by the court because states facing budget restraints would have to expend a substantial sum of unrecoverable public funds to increase salaries or pay overtime to employees and may possibly have to layoff or reorganize workforces causing a substantial interference in government services.

A preliminary injunction is not permanent, but it does preserve the current rule while the court deliberates the merits of the case. As a result, the new rule will not take effect on December 1, 2016, and employers may continue to classify employees as exempt if they pay employees at least $23,660 annually on a salary basis and if the employees meet the appropriate duties test.

DOL’s rule could still become effective if the Texas court does not issue a permanent injunction or otherwise rule against the DOL.  The Labor Department is expected to challenge the ruling.

Because the preliminary injunction could be lifted on short notice, legal experts advise that employers should continue to prepare for changes called for in DOL’s rule.

Critical preparation considerations are discussed by the Piliero Mazza law firm at: http://www.pilieromazza.com/blog/far-reaching-impact-of-dols-increase-to-flsa-salary-thresholds

Filed Under: Contracting News Tagged With: DOL, Fair Labor Standards Act, FLSA, HCE, highly compensated employee, Labor Dept., overtime, pay, preliminary injunction, salaries

OFCCP offers Jan. 11 webinar to explain new pay transparency rules

December 11, 2015 By Andrew Smith

Today (January 11, 2016), the final rule implementing Executive Order 13665 goes into effect. The Executive Order prohibits federal contractors from firing or otherwise disciplining employees or job applicants for discussing their pay or the pay of their co-workers.

OFCCPA blog post outlining the final rule’s requirements can be found here.

The Office of Federal Contract Compliance Programs (OFCCP) is hosting a webinar on January 11, 2016 at 2:00 p.m. EST to “provide an overview of the final rule, address questions received by the agency since the rule’s September publication, and illustrate the practical application of defenses provided in the rule through several hypothetical scenarios.”

You can register to attend the webinar here.

Contractors should add the new non-discrimination language to their manuals and handbooks and either disseminate their updated policies to employees or post them conspicuously in the workplace.  In addition, contractors should post the updated “EEO is the Law Posted,” available here.

Filed Under: GTPAC News Tagged With: equal opportunity, Executive Order, Labor Dept., labor l, labor laws, non-discrimination, OFCCP, pay

Federal rule on pay transparency effective Jan. 11, 2016

September 29, 2015 By Andrew Smith

OFCCPThe Office of Federal Contract Compliance Programs (OFCCP) has published a final rule implementing President Obama’s executive order prohibiting federal contractors from discriminating against employees for discussing or inquiring about their own compensation or that of other employees. The final rule takes effect January 11, 2016 for covered federal contractors.

Background

On April 8, 2014, President Obama signed Executive Order 13665, which prohibits federal contractors from maintaining pay secrecy policies. This executive order amended section 202 of Executive Order 11246, which requires federal agencies to include an equal opportunity (EO) clause in all government contracts.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=427780

See earlier article on this subject here: http://gtpac.org/2014/09/25/proposed-rule-prohibits-federal-contractors-from-firing-employees-who-discuss-pay/

Filed Under: Contracting News Tagged With: DOL, Labor Dept., OFCCCP, pay, pay transparency

Proposed rule prohibits federal contractors from firing employees who discuss pay

September 25, 2014 By ei2admin

Federal contractors would have to inform their employees of their right to openly discuss pay in the workplace without fear of retaliation under new proposed rules from the Labor Department.

Firms that do business with the federal government would have to incorporate the new non-discrimination language in their existing employee handbooks and disseminate the information, either electronically or by publicly posting a copy of the requirement, according to draft rules published in the Federal Register. They also would have to include the provision in the existing equal opportunity clause in their contracts. The proposed regulations implement an executive order signed by President Obama in April that protects employees of federal contractors who disclose their pay, or the compensation of other workers, from being fired or otherwise retaliated against by employers.

The proposed rule would apply to all federal contractors that do more than $10,000 worth of business with the government. Approximately 500,000 contractors are registered with the General Services Administration.

Keep reading this article at: http://www.govexec.com/contracting/2014/09/proposed-rule-prohibits-federal-contractors-firing-employees-who-discuss-pay/94115/

Filed Under: Contracting News Tagged With: compensation, GSA, Labor Dept., labor laws, pay, retaliation

Recent Posts

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