The pause on the Department of Labor’s overtime final rule is under fire, and you may be responsible for its new requirements.
Recap:ATexas federal judge granted a preliminary injunction against the rule, meaning the Dec. 1 start date didn’t take effect (see Eli’s HCW, Vol. XXV, No. 43). Then home care providers had to decide whether to proceed with modifications such as salary increases and reclassification of employees anyway.
Now, the DOL on Dec. 1 filed a notice to appeal the preliminary injunction blocking the rule from taking effect. “If the Fifth Circuit rules in favour of the DOL, the Overtime Final Rule may be enforceable retroactively to its original effective date of December 1, 2016,” warns attorney Eileen Maguire of Gilliland, Harper & Maguire in Indianapolis.
But “there are strong arguments that employers should be exempted from complying with the new rules from December 1 … until the date the injunction is lifted,” notes law firm Orrick in analysis of the case. And while not guaranteed, the DOL typically holds off on enforcement while an injunction is pending, note attorneys from the firm.