flsa forecast infographic

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THE FORECAST FOR THE FUTURE OF THE DOL OVERTIME RULE CHANGES LIFT Follow Netchex for FLSA Overtime Rule Updates: POSSIBLE OUTCOMES FROM THE APPELLATE COURT If the outcome of the FLSA revisions could be described in one word, it would definitely be “Stormy.” The current injunction is not permanent but keeps the DOL from enforcing the changes for however long it takes for the case to be resolved. Todate, the judge has not held a hearing or ruled on the case. Should he issue a ruling anytime soon, the fact that an injunction Legal Language In a recent SHRM article, Gerald Hathaway, an attorney with Drinker Biddle in New York City believes the case will certainly get the attention of the 5th Circuit. According to Hathaway, the judge’s use of a 1933 dictionary to determine the original interpretation the 1938 FLSA calls into question the DOL’s authority to ever have included a salary test in the determination of those eligible for overtime. “So if the statute was so plain in 1938, which is indeed the core of the judge’s holding, then there never was any basis for the DOL to impose a salary test of any kind at any time,” stated Hathaway. The court may decide that the rules were acceptable and lift the overtime rule injunction, allowing for implementation and enforcement. was issued suggests that the judge is leaning in favor of the groups that want to stop the rule changes. Under President Trump, the DOL requested a 30day extension to file a brief. If granted, the extension would give the administration ample time to decide how to proceed with a rule that most experts believe they are not in favor of pursuing. COMPROMISE The court may find parts of the new FLSA rules acceptable and lift the injunction on those portions, while maintaining the injunction on the rest. MAINTAIN The court may agree that the DOL overstepped their powers and maintain the injunction. UNCERTAINTY GOING FORWARD Presidential Direction Although the Presidentelect has not weighed in on the FLSA ruling, he has chosen a new Secretary of Labor who will be the deciding factor on the position of the DOL going forward. On December 8, the Trump administration announced CKE Restaurants Inc. CEO, Andrew Puzder, as his pick for Labor Secretary. Puzder has expressed views in line with the Republican platform. With his opposition to raising the federal minimum wage, it is highly unlikely he will favor any actions on behalf of the DOL that will significantly impact business costs.

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Page 1: Flsa Forecast Infographic

THE FORECAST FORTHE FUTURE OF THEDOL OVERTIMERULE CHANGES

LIFT

Follow Netchex for FLSA Overtime Rule Updates:

P O S S I B L E O U T C O M E S F R O MT H E A P P E L L A T E C O U R T

If the outcome of the FLSA revisionscould be described in one word, itwould definitely be “Stormy.” Thecurrent injunction is not permanent butkeeps the DOL from enforcing thechanges for however long it takes forthe case to be resolved. To­date, thejudge has not held a hearing or ruled onthe case. Should he issue a rulinganytime soon, the fact that an injunction

Legal LanguageIn a recent SHRM article, Gerald Hathaway, an attorney with Drinker Biddle inNew York City believes the case will certainly get the attention of the 5th Circuit.According to Hathaway, the judge’s use of a 1933 dictionary to determine theoriginal interpretation the 1938 FLSA calls into question the DOL’s authority toever have included a salary test in the determination of those eligible for overtime.“So if the statute was so plain in 1938, which is indeed the core of the judge’sholding, then there never was any basis for the DOL to impose a salary test of anykind at any time,” stated Hathaway.

The court maydecide that the ruleswere acceptable andlift the overtime ruleinjunction, allowingfor implementationand enforcement.

was issued suggests that the judge isleaning in favor of the groups thatwant to stop the rule changes. UnderPresident Trump, the DOLrequested a 30­day extension to filea brief. If granted, the extensionwould give the administration ampletime to decide how to proceed witha rule that most experts believe theyare not in favor of pursuing.

COMPROMISEThe court may find partsof the new FLSA rulesacceptable and lift theinjunction on thoseportions, whilemaintaining theinjunction on the rest.

MAINTAINThe court may agreethat the DOLoverstepped theirpowers and maintainthe injunction.

UNCERTAINTY GOING FORWARD

Presidential DirectionAlthough the President­elect has not weighed in on the FLSA ruling, he has chosena new Secretary of Labor who will be the deciding factor on the position of theDOL going forward. On December 8, the Trump administration announced CKERestaurants Inc. CEO, Andrew Puzder, as his pick for Labor Secretary.  Puzder hasexpressed views in line with the Republican platform. With his opposition to raisingthe federal minimum wage, it is highly unlikely he will favor any actions on behalfof the DOL that will significantly impact business costs.