As we reported last month, several states and business groups had sued to temporarily block the implementation of the revised overtime exemption rules commonly known as the “white collar” exemptions. The details can be found in this article or a simple Google search for the exemption will give you more information than you need. The rule has an effective date of December 1, 2016… for now anyway.
According to this article, the suits have been combined and were heard together earlier this week. From what I’ve read, the judge seems somewhat sympathetic to the business and state plaintiffs in the matter. At least for now, the groups are asking for a temporary stay or delay in the implementation of the rules. There are many benefits to allowing for a delay including allowing businesses to better adjust to the new pay scale and / or the time to bump pays a bit slower to keep the exemptions for those employees that currently are on the bubble. It would also give the new Administration time to review and revise the rule to fit their policy.
To complicate issues a bit more for some in South Carolina, please read this article from Fisher Phillips. It outlines an SC law that requires 7 days written notice to affected employees when changes are made in their wages if those changes have the possibility to have a negative impact. If you are a SC employer and have employees that will be going from salaried to hourly, please read the linked article.
The Judge in the matter has said he will give his decision next week, November 22. We will be eagerly awaiting this decision. This is probably the #1 question I get when I speak to ginners in recent weeks. Watch your inbox for details.