Important Notice Regarding U.S. Department of Labor’s Changes to the Overtime Payment Regulations

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IMPORTANT NOTICE TO OUR CLIENTS:

Last evening, a federal judge in Texas blocked the U.S. Department of Labor’s changes to the regulations regarding the payment of overtime that would have made more than 4 million U.S. workers eligible for overtime pay.  As you may know, the regulations were scheduled to take effect December 1st and many employers nationwide have planned to change the way they pay workers to meet the requirements of the new regulations.

The emergency injunction may not permanently block the rule change, but does block its December 1st mandatory implementation.  There is no schedule for when the matter will be heard again.  We anticipate an appeal to the Fifth Circuit Court of Appeal and most likely an eventual hearing before the United States Supreme Court.
Please contact us to discuss:

  • Whether or not to convert employees from exempt to non-exempt who were scheduled to change due to the increased threshold for the Salary Basis Test to $47,476
  •  Whether or not to reverse the conversion for employees from exempt to non-exempt who were already changed due to the increased threshold for the Salary Basis Test
  • Whether or not to convert employees from exempt to non-exempt who were changing as a result of a review of the various Duties Tests, not as a result of the Salary Basis Test

We expect a high volume of calls and emails but will be available to discuss this important issue.  The firm’s general number is 215-887-0200.

Michael J. Torchia:  mtorchia@sogtlaw.com
Michael B. Dubin:  mdubin@sogtlaw.com
Stephen C. Goldblum:  sgoldblum@sogtlaw.com
Frank P. Spada:  fspada@sogtlaw.com
Maura K. McDaid:   mmcdaid@sogtlaw.com

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