News Releases
December 13, 2016
From Channel 11 WXIA-TV Atlanta

by Jennifer Leslie

Businesses have to make tough decisions about how to respond to a court order that puts new overtime rules on hold.

In late November, a federal court blocked the start of a rule that would have made as many as 4 million more American workers eligible for overtime pay.

"Employers who had been planning on reclassifying employees from exempt to nonexempt or raising salaries to meet the new minimum salary level required to qualify for exempt status may stand down," said Atlanta-based labor and employment attorney Jim Swartz from Polsinelli.

But Swartz said the timing of the decision so close to the start date of the new rule put employers in a tough position.

"Many employers had already communicated to their employees that exemption status or salary level would change on December 1, Swartz added. "Employers must now decide whether to go ahead with the planned changes or postpone them until the state of the law is clear."

Under the incoming Trump administration, the leadership of the Department of Labor may abandon the appeal or seek administrative or legislative revision of the rule, Swartz explained.

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