Tip for Marijuana Business Owners: FLSA Overtime Change

Jay Lauren

What you need to know about the Department of Labor’s proposed changes to the FLSA Overtime Rules.

The new FLSA Overtime rules have been delayed by the election, and a challenge in court. A federal judge in Texas filed an injunction blocking the Department of Labor’s new federal overtime rule.
  • The new FLSA Overtime rule would have doubled the Fair Labor Standards Act’s salary threshold for exemption from overtime pay from $23,660 to $47,476.
  • The lawsuit filed by Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas challenges the DOL’s authority to raise the salary threshold.
  • Businesses and employees are in a holding pattern for now.
  • This means that for now, the overtime rule will not take effect as planned on December 1st, so employers may continue to follow the existing overtime regulations. 
  • If you have already provided salary increases to employees to maintain their exempt status, it is recommended you leave your changes in place. This is key to note since the hold on the new FLSA Overtime Rules isn’t permanent.
  • The new FLSA Overtime rule could still be implemented later down the road as the preliminary injunction isn’t permanent.
If the new POTUS and Congress work together to limit the rule’s impact, the process could take many months (or even years) to implement. As an employer, you should not assume the overtime rule will be permanently barred. Make sure you have a plan in place to move forward if needed in the future.
This update and advice has been provided by WÜRK: HR, Payroll, and Timekeeping for the Cannabis Industry. Visit them at: http://www.enjoywurk.com/.