Overtime Update

 

It seems a lifetime ago that the Department of Labor (DOL) announced changes to employee overtime rules that would raise the salary threshold for exempt employees.* The rule was to take effect on December 1, 2016. Many employees who had been exempt from overtime would be eligible for overtime pay under the new rule which raised the exemption threshold to $913 a week: $47,476 per year rather than the current $23,660. Employers scrambled to revise job descriptions and policies regarding overtime work to comply with the rule.

Twenty-one states file suit to challenge the new rule. On November 22, 2016, the U.S. District Court in Sherman, Texas granted the states’ motion to prevent the rule from taking effect. The DOL appealed the decision to the Fifth Circuit. Briefing was completed last month, and it appears that the DOL has abandoned the new salary level. Instead, the DOL is seeking information. On July 26, the Federal Register published a request for information posing 11 sets of specific questions for public comment. Questions include whether there should be multiple salary levels for exempt employees based on factors such as inflation, employer size, and census region; how setting different exemption levels for executive vs. administrative employees would affect businesses; and whether the exemption test ought to be based solely on the employee’s duties rather than salary. Comments are due by September 25, 2017. The questions and instructions for submitting comments are here. Anyone can submit a comment, and so far over 65,000 comments have been submitted.

What should employers do? Nothing for now. Now, we wait for the Fifth Circuit to issue an opinion.

See our previous blogs about the overtime rule: 11/29/16 – A Lump of Coal for Admin Employees? Texas Court Blocks Implementation of DOL’s Overtime Rule Change; 11/16/16 $47,476 the Magic Number – Are You Ready?; 10/10/16 – Time’s a Wastin’ – Get Ready for the new Overtime Rule; 5/27/16 – Holiday Gift for Salaried Workers: OVERTIME.

“Be Nice” Policies Employee handbooks revisited

Many employers want to include provisions in their handbooks requiring that employees be polite to each other and act with honesty and integrity. The National Labor Relations Board took the position that such provisions violated the National Labor Relations Act by discouraging employees from union organizing.

Yesterday, the 5th Circuit Court of Appeals clarified that these kinds of handbook provisions do not violate the law as long as a reasonable employee would interpret the policy as a common sense instruction to use professional manners, maintain a positive work environment, and be courteous.

Employers need not shy away from asking for civility in the workplace with a carefully crafted handbook.

The Court decision is Cause No. 16-60284, T-Mobile USA, Inc. v. NLRB, In the United States Court of Appeals for the Fifth Circuit, July 25, 2017.

Five Things That Will Save Your Start-Up Money In The Long Run

It’s a fact that many small business ventures fail in their first year. There are tons of resources on the web about why so many new businesses fail, and I won’t attempt to recreate them here. However, I’ve noticed five things that many failed businesses have in common. The purpose of this post is to help you avoid these shortcomings when starting your business. Here they are in a nutshell:

  1. Write a business plan.
  2. Set goals.
  3. Get professional help early.
  4. Understand the difference between employees and contractors.
  5. Write everything down.

Show me How!