So, Which Overtime Law Will You Follow?

What if you’ve already implemented the July increase? Do you go back to your employees and tell them the extra pay is no longer coming?

Good Morning!

Here are today’s highlights:

• There are now more Americans looking to switch jobs than during the Great Resignation.

• Here’s how Nick Huber turned a dorm-room business into a blue-collar empire.

• Josh Patrick wants to know how businesses in industries staffed by immigrants are preparing for the crack down.

• Home insurance rates are rising faster in Texas than in any other state.

HUMAN RESOURCES

That new overtime law has been stayed by a federal judge. Gene Marks discusses what it means for employers: “Under the old regulations, salaried employees who earned more than $35,568 annually were not entitled to overtime pay when they worked more than 40 hours per week. That compensation level was lifted to $43,888 on July 1, and was scheduled to increase again to $58,656 on Jan. 1, 2025. The U.S. Department of Labor estimated that ‘millions of workers’ would be entitled to additional pay. But that outlook now looks less likely. In November, a Texas federal court found the new overtime rule ‘exceeds the Department of Labor’s authority.’ Last week the Department appealed the decision, but as of now the overtime rule is suspended.”

• “Most legal experts expect the incoming Trump administration to not pursue the Biden Administration’s appeal and instead let the overtime threshold revert back to $35,568. However, this is not guaranteed. President-elect Donald Trump’s proposed labor secretary, Lori Chavez-DeRemer, is a longtime supporter of unionization and workers’ right to organize.”

• “If you’re running a business, this creates a lot of uncertainty. Do you comply with the new rule, even though it’s still up in the air? Or do you revert your overtime pay policy? If you’ve been waiting for the outcome of this case and the presidential election before making any changes to your overtime pay policy then one option is to continue with the same policy that was in effect before July 1.”

• “But if you’ve already taken steps to comply with the July 1 increase then you can roll these changes back. However, this means removing potential extra pay from employees, which could create resentment. Walking back a previously announced benefit is never popular.”

• “[Employers] should also know that the ruling doesn’t affect state laws with higher overtime thresholds, Markey added. Those include Alaska, California, Colorado, Maine, New York, and Washington.” READ MORE