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November 29th, 2016 / by Mike Cooney

New Overtime Rule Blocked

A federal judge in Texas blocked the new overtime rules that were to go into effect Thursday, December 1, 2017. The new law, spearheaded by Obama in an effort to raise wages, would have extended mandatory overtime to 4 million employees. (Red Zone HR wrote about the changes here.) With the injunction issued late last week, any changes are on a temporary, yet indefinite, hold. It is unclear how this will proceed and what the new administration will do.

What does this mean for employers now?

There are a few options for employers at this point. The most important thing to realize is this now becomes a business decision unique to your organization, rather than a requirement for legal compliance. Businesses may choose to move forward with the changes as planned or choose to hold. Businesses who have already rolled out the changes may choose to keep them in place or repeal them.

Whatever decision employers find themselves facing, they will want to put their finger on the culture and morale within their teams when moving forward, paying careful attention to issues such as:

  1. How difficult is it to undo changes already made in anticipation of this law?
  2. How did employees feel about the changes? (The changes already made as well as those yet to be implemented.)
  3. How hard will it be to make changes in the future, maybe even on short notice should the law go into effect?

In light of this breaking news, keep a pulse on your employees on how you handle it because their productive will have an impact on the company’s performance.