December 2016 Issue Highlights
In the Spotlight: Bruce and Blair Johanson, Arkansas Compensation Gurus
- December 2016 a note from the editor
- Profile: Bruce & Blair Johanson, Arkansas Compensation Gurus
- In Memory of John E. Megley III
- 70% of Companies Will Offer It by 2018
- Highlights from the Talent Reality Workshop
- Compensation and Performance Management
- 3 Reasons Millennial Women Are Still Experiencing Gender Income Equality by Ahu Yildirmaz
- Changing Perspective on Performance Appraisals by Joel Myers and Brad Federman
- Does Our Emotional Intelligence Influence How Much Money We Make? by Harvey Deutschendorf
- Will Market-Based-Only Salary Structures Survive Regulatory Reviews and Scrutiny by Bruce and Blair Johanson
- Employee Benefits
- Build a Better Benefits Package
- Realizing the Future of Big Data in Employee Benefits – Part 2 by Alex Gramling
- What is Going to Happen to Healthcare in America by Kerstin Nemec and Tim Norwood
- Rising Drug Costs Trending Up by Jennifer S. Kiesewetter
- How Healthcare Workers Are the New Epidemic in Workplace Injury by Christine Ferris and Megan Connell
- Open for Business Means Open for Benefits by Blake Rogers, Jimmy Hinton, and Chris Menard
- Highlights from the 7th Annual MSBGH and MC College Healthcare Summit
- Employment Law
- Wright Lindsey Jennings 2016 Legislative Seminar December 14
- Highlights from Wimberly Lawson 37th Annual Human Resources and Employment Law Update Conference
- You Are Invited to a Littler Memphis Event December 1: The Election is Over – What’s Next?
- 2016 Roundup of Major State Employment Developments by Martin F. Thompson
- MBA Seminar December 2
- Paid Sick Leave for Federal Contractors by Russell Jackson
- Deciphering Fuzzy Language Under the ADA by William Stuart Jackson
- HR Professionals Beware of Potential Antitrust Laws by Kim Hodges
- Post-Election Update: What Should Employers Expect from the Trump Administration? by Alex Boals and Brenda Canale
- Treading the Muddy Waters of the ADAAA by Tannera Gibson
- Industry News
- Highlights from the SHRM-Memphis HR Excellence Awards
- Highlights from the WTSHRM 7th Annual Human Resources & Employment Law Fall Conference
- NEMSHRA Workshop for Supervisors, Managers, and HR Professional
- North Central MS HRA Meeting
- Next Issue – U.S. News Best Law Firms & Top Employee Benefits Companies – Ads and Articles due by December 10
Breaking News – FLSA Overtime Rule Blocked
(Nov. 22, Texas) A federal judge in Texas has put the brakes on the Department of Labor’s new federal overtime rule, just 10 days before the effective date of December 1. The new regulation would have doubled the Fair Labor Standards Act’s salary threshold for exemption from overtime pay. It would have increased the salary threshold from $23,660 to $47,476. In addition, it provided for adjustments based on the 40th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census region every three years.
Twenty-one states filed an emergency motion for a preliminary injunction in October to halt the rule. They claimed that the DOL exceeded its authority by raising the salary threshold too high and by providing for automatic adjustments to the threshold every three years. These cases were consolidated in October with another lawsuit filed by the U.S. Chamber of Commerce and other business groups that also objected to the rule.
Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas said, “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.” For now, the overtime rule will not take effect as planned Dec. 1, but it could still be implemented later down the road as a preliminary injunction isn’t permanent. It preserves the existing overtime rule last updated in 2004 until the court has a chance to review the case and the objections to the revisions to the regulation.
Judge Mazzant noted that the DOL “has admitted that it cannot create an evaluation ‘based on salary alone. However, “this significant increase to the salary level creates essentially a de facto salary-only test,” he said. “If Congress intended the salary requirement to supplant the duties test, then Congress—and not the department—should make that change.”
The DOL released a statement advising, “We strongly disagree with the decision by the court, which has the effect of delaying a fair day’s pay for a long day’s work for millions of hardworking Americans. The department’s overtime rule is the result of a comprehensive, inclusive rulemaking process, and we remain confident in the legality of all aspects of the rule. We are currently considering all of our legal options.”
Although some employers have already increased some salaries, if there are exempt employees who were going to be reclassified to nonexempt, but haven’t yet been reclassified, you may postpone those decisions and see what happens down the road.
For information about becoming a sponsor of HR Professionals Magazine, please contact Cynthia via email or call 901.598.0123 and get your product and service in front of 30,000 HR executives and professionals.