What is the FLSA overtime Rule?
The Fair Labor Standards Act (FLSA) overtime rule determines whether employees are eligible or exempt for overtime pay. Under the rule employees may be classified as exempt due the rate of pay and the type of work that they perform. Perhaps most importantly, employees who are classified as exempt are not eligible for overtime pay for any hours worked over 40 during a workweek. Similarly, an employee who is classified as exempt must be paid “time and a half for any hours worked more than 40 in a workweek” (Department of Labor, 2008). Additional stipulation outlined within the new rule would require employers to compensate employees who were classified as exempt with …show more content…
The extent of any possible change or impacts of such change was unknown at the time due upcoming changes within the United States government. Nonetheless, no public or private institution would have to wait for a new administration to take office before the possible changes in the rules passing would have to be addressed. This is due primarily to a hearing that was held on November 16th where 21 U.S. states filed a preliminary injunction against the Department of Labor to delay the December 1st implementation of the New Overtime Rule. The injunction was filed by 21 states which included “Nevada; Texas; Alabama; Arizona; Arkansas; Georgia; Indiana; Kansas; Louisiana; Nebraska; Ohio; Oklahoma; South Carolina; Utah; Wisconsin; Kentucky; Iowa; Maine; New Mexico; Mississippi; Michigan”. Shortly after on November 21st, a federal judge in Texas put the brakes on the Department of Labor’s (DOL's) new federal overtime rule, claiming that a “preliminary injunction preserves the status quo while the court determines the department’s authority to make the final rule as well as the final rule’s validity” (Society for Human Resource Management,